International production sharing and economic development: moving up the value-chain for a small-open economy
This study theoretically examines the factors required by a small-open economy to move up the value-chain. To carry out the study, a framework of production sharing involving a large developed country and a less developed small-open economy is used. Service bundles are modelled as inputs for coordinating the manufacturing activities located across the countries. It is found that the small-open economy can move up the value-chain when the size of its skilled labour force increases and the production cost of its service bundles decreases.
Volume (Year): 11 (2004)
Issue (Month): 14 ()
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