Structural Changes In International Trade: Inter-Industry Shifts In Comparative Advantage
The contemporary industrial configuration centered on intra-firm trade and cross border commodity chains has made comparative advantage look like a rusty concept. Prior to globalization, shifts in comparative advantage would occur mainly across industries, causing clear-cut changes in countries’ specialization patterns. By contrast, when factors of production are allowed to move freely across national boundaries, the picture gets somewhat fuzzy: the comparative advantage concept requires a different approach that should take into account the increasing disintegration of production processes and spreading of economic activities across the globe. Due to their relatively high mobility and propensity for outsourcing, labor-intensive industries visibly epitomize this process, which is going on in many parts of the world, including Central and Eastern Europe.
Volume (Year): 7 (2012)
Issue (Month): 1 (April)
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