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Integration of Trade and Disintegration of Production in the Global Economy

Author

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  • Robert C. Feenstra

Abstract

The last few decades have seen a spectacular integration of the global economy through trade. The rising integration of world markets has brought with it a disintegration of the production process, however, in which manufacturing or services activities done abroad are combined with those performed at home. The author compares several different measures of foreign outsourcing and argues that they have all increased since the 1970s. He also considers the implications of globalization for employment and wages of low-skilled workers and for trade and regulatory policy, such as labor standards.

Suggested Citation

  • Robert C. Feenstra, 1998. "Integration of Trade and Disintegration of Production in the Global Economy," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 31-50, Fall.
  • Handle: RePEc:aea:jecper:v:12:y:1998:i:4:p:31-50
    Note: DOI: 10.1257/jep.12.4.31
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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jep.12.4.31
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    References listed on IDEAS

    as
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    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F15 - International Economics - - Trade - - - Economic Integration
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General

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