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Super-Specialization And The Gains From Trade

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  • SVEN W. ARNDT

Abstract

An important facet of "globalization" is the spread of cross-border production, which is variously known as intro product specialization, super-specialization, or production fragmentation. This advanced stage in the international division of labor works particularly well between high-wage developed and low-wage emerging economies. But it is precisely this context in which the practice has been criticized for destroying jobs and undermining wages. Copyright 1998 Western Economic Association International.

Suggested Citation

  • Sven W. Arndt, 1998. "Super-Specialization And The Gains From Trade," Contemporary Economic Policy, Western Economic Association International, vol. 16(4), pages 480-485, October.
  • Handle: RePEc:bla:coecpo:v:16:y:1998:i:4:p:480-485
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    1. Arndt, Sven W., 1997. "Globalization and the open economy," The North American Journal of Economics and Finance, Elsevier, vol. 8(1), pages 71-79.
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    Cited by:

    1. Ramkishen S. Rajan & Rahul Sen & Reza Y. Siregar, 2002. "Hong Kong, Singapore and the East Asian Crisis: How Important were Trade Spillovers?," The World Economy, Wiley Blackwell, vol. 25(4), pages 503-537, April.
    2. Egger, Peter & Pfaffermayr, Michael & Wolfmayr-Schnitzer, Yvonne, 2001. "The international fragmentation of Austrian manufacturing: The effects of outsourcing on productivity and wages," The North American Journal of Economics and Finance, Elsevier, vol. 12(3), pages 257-272, November.
    3. Robert C. Feenstra & Gordon H. Hanson & Deborah L. Swenson, 2000. "Offshore Assembly from the United States: Production Characteristics of the 9802 Program," NBER Chapters,in: The Impact of International Trade on Wages, pages 85-125 National Bureau of Economic Research, Inc.
    4. Raphael Chiappini, 2012. "Decomposition Internationale Des Processus Productifs Et « Economie De Bazar » :Une Analyse Sur Les Principaux Exportateurs De La Zone Euro," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 55(2), pages 205-234.
    5. Gao, Ting, 2007. "Trade costs, international production shifting, and growth," European Economic Review, Elsevier, vol. 51(2), pages 317-335, February.
    6. Horgos Daniel, 2012. "International Outsourcing and Wage Rigidity," Global Economy Journal, De Gruyter, vol. 12(2), pages 1-28, June.
    7. Pablo, Agnese, 2009. "Japan and her dealings with offshoring: An empirical analysis with aggregate data," MPRA Paper 16505, University Library of Munich, Germany.
    8. Deardorff, Alan V., 2001. "Fragmentation in simple trade models," The North American Journal of Economics and Finance, Elsevier, vol. 12(2), pages 121-137, July.
    9. Castellani, Davide & De Benedictis, Luca & Horgos, Daniel, 2013. "Can we really trust offshoring indices?," Structural Change and Economic Dynamics, Elsevier, vol. 25(C), pages 159-172.
    10. Hongbo Cai & Xiangjun Zhang, 2011. "Off-shoring and labor productivity: Evidence from China," Frontiers of Economics in China, Springer;Higher Education Press, vol. 6(2), pages 271-289, June.
    11. Nuno Leitão & Horácio Faustino & Yushi Yoshida, 2009. "Determinants of Vertical Intra-Industry Trade in the Automobile Manufacturing Sector: globalization and fragmentation," Working Papers Department of Economics 2009/06, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    12. 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.
    13. Kohler, Wilhelm, 2001. "A specific-factors view on outsourcing," The North American Journal of Economics and Finance, Elsevier, vol. 12(1), pages 31-53, March.
    14. Sven Arndt, 2002. "Production Sharing and Singapore's Global Competitiveness," Claremont Colleges Working Papers 2002-36, Claremont Colleges.
    15. Warda, Peter, 2013. "Labor Decomposition: A Firm Level Analysis on Import Quality and Labor Demand," Working Paper Series in Economics and Institutions of Innovation 322, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    16. David Hummels & Laura Puzzello, 2010. "Some Evidence on the Nature and Growth of Input Trade," Chapters,in: Input Trade and Production Networks in East Asia, chapter 3 Edward Elgar Publishing.
    17. Horgos, Daniel, 2009. "Labor market effects of international outsourcing: How measurement matters," International Review of Economics & Finance, Elsevier, vol. 18(4), pages 611-623, October.
    18. Dluhosch, Barbara, 2006. "Intraindustry trade and the gains from fragmentation," The North American Journal of Economics and Finance, Elsevier, vol. 17(1), pages 49-64, March.
    19. Egger, Hartmut & Falkinger, Josef, 2003. "The distributional effects of international outsourcing in a 2 x 2 production model," The North American Journal of Economics and Finance, Elsevier, vol. 14(2), pages 189-206, August.
    20. Pablo, Agnese, 2009. "Employment effects of offshoring. An application to Japanese industries, 1980-2005," MPRA Paper 16506, University Library of Munich, Germany.
    21. Warda, Peter, 2014. "Offshoring, Occupations and Job Tasks: Evidence from Swedish Manufacturing," Working Paper Series in Economics and Institutions of Innovation 375, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    22. Egger, Hartmut & Egger, Peter, 2001. "Cross-border sourcing and outward processing in EU manufacturing," The North American Journal of Economics and Finance, Elsevier, vol. 12(3), pages 243-256, November.
    23. Agnese, Pablo & Ricart, Joan E., 2009. "Offshoring: Facts and figures at the country level," IESE Research Papers D/792, IESE Business School.
    24. Sven Arndt, 2000. "Production Networks in an Economically Integrated Region," Claremont Colleges Working Papers 2000-49, Claremont Colleges.

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