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Globalization and Country-Specific Service Links

Author

Listed:
  • Stephen S. Golub
  • Ronald W. Jones
  • Henryk Kierzkowski

Abstract

The Jones-Kierzkowski model of global fragmentation of production draws attention to the efficiency of 'service links' connecting 'production blocks' in different countries. Country-specific service links include transport and telecommunications infrastructure and the overall business climate. Mobile factors of production, most prominently foreign direct investment (FDI), can shop around for countries with the most functional and inexpensive service links along with low labor costs. Those countries with favorable business climates and well-functioning service links are able to attract FDI and other mobile inputs. We provide cross-sectional evidence that successful exporters of manufactures, notably in East Asia, have relatively favorable service links.

Suggested Citation

  • Stephen S. Golub & Ronald W. Jones & Henryk Kierzkowski, 2007. "Globalization and Country-Specific Service Links," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 10(2), pages 63-88.
  • Handle: RePEc:taf:jpolrf:v:10:y:2007:i:2:p:63-88
    DOI: 10.1080/17487870701272827
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    Citations

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    Cited by:

    1. Eric W. Bond & Yan Ma, 2013. "Learning by Doing and Fragmentation," Pacific Economic Review, Wiley Blackwell, vol. 18(5), pages 603-627, December.
    2. Prema-chandra Athukorala & Tala Talgaswatta & Omer Majeed, 2016. "Global production sharing: exploring Australia's competitive edge," Departmental Working Papers 2016-05, The Australian National University, Arndt-Corden Department of Economics.
    3. Peter Debaere & Holger Görg & Horst Raff, 2013. "Greasing the wheels of international commerce: how services facilitate firms' international sourcing," Canadian Journal of Economics, Canadian Economics Association, vol. 46(1), pages 78-102, February.
    4. Zeddies, Götz, 2007. "Determinants of International Fragmentation of Production in the European Union," IWH Discussion Papers 15/2007, Halle Institute for Economic Research (IWH).
    5. Fumio Dei, 2010. "Peripheral Tasks Are Offshored," Review of International Economics, Wiley Blackwell, vol. 18(5), pages 807-817, November.
    6. Golub, Stephen & Hayat, Faraz, 2014. "Employment, unemployment, and underemployment in Africa," WIDER Working Paper Series 014, World Institute for Development Economic Research (UNU-WIDER).
    7. Henryk Kierzkowski & Lurong Chen, 2007. "Outsourcing and Trade Imbalances: The U.S: - China Case," DEGIT Conference Papers c012_003, DEGIT, Dynamics, Economic Growth, and International Trade.
    8. Ma, Yan, 2015. "The product cycle hypothesis: The role of quality upgrading and market size," International Review of Economics & Finance, Elsevier, vol. 39(C), pages 326-336.
    9. Jones, Ronald W., 2010. "Art works in international trade theory," International Review of Economics & Finance, Elsevier, vol. 19(1), pages 64-74, January.
    10. Alastaire Sèna ALINSATO, 2015. "Globalization, Poverty And Role Of Infrastructures," Journal of Economics and Political Economy, KSP Journals, vol. 2(1s), pages 197-212, May.
    11. Henryk Kierzkowski & Lurong Chen, 2010. "Outsourcing And Trade Imbalances: The United States-China Case," Pacific Economic Review, Wiley Blackwell, vol. 15(1), pages 56-70, February.
    12. Prema-chandra Athukorala & Peter B. Dixon & Maureen T. Rimmer, 2017. "Global Supply Chains: towards a CGE analysis," Centre of Policy Studies/IMPACT Centre Working Papers g-281, Victoria University, Centre of Policy Studies/IMPACT Centre.
    13. repec:bla:worlde:v:40:y:2017:i:2:p:439-461 is not listed on IDEAS
    14. Ceglowski Janet & Golub Stephen S., 2012. "Does China Still Have a Labor Cost Advantage?," Global Economy Journal, De Gruyter, vol. 12(3), pages 1-30, September.
    15. Ivan T. Kandilov & Thomas Grennes, 2010. "The determinants of service exports from Central and Eastern Europe," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 18(4), pages 763-794, October.
    16. Athukorala, Prema–Chandra & Menon, Jayant, 2010. "Global Production Sharing, Trade Patterns, and Determinants of Trade Flows in East Asia," Working Papers on Regional Economic Integration 41, Asian Development Bank.
    17. Millanida Hilman, Rafiazka & Widodo, Tri, 2015. "Global Production Sharing in Machinery and Transport Equipment Industry in the ASEAN4," MPRA Paper 79663, University Library of Munich, Germany.

    More about this item

    Keywords

    Globalization; manufacturing; outsourcing; export-led growth; foreign direct investment footloose factors; fragmentation;

    JEL classification:

    • C79 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Other
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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