How far do we trade intermediate inputs?
We look at determinants of intermediates inputs imports focusing on the role of distance as a direct measure of the costs involved in spreading a production process across different economies. We consider imports to two countries - Italy, whose competitive advantage is still hinged in the traditional sectors, and Germany, strongly specialized in skilled and capital intensive activities; in two sectors, footwear and PCs; in two periods end of the 80s and end of the 90s. Delocalization of stages of that part of the production which serves the domestic market to a foreign country is a costly activity at least because of the transport costs from re-importing goods home. The evidence of falling off imports with distance captures exactly how transport costs can offset other cost advantages from the use of cheaper resources. Our results would suggest this is not the case in all sectors, at least not in the production of computers and their parts. Imports of intermediates inputs for electronic components are not a clear indication of activities outsourced, delocalized with the aim of reducing costs. Other characteristics of trade patterns and of their production technology will have to investigated in order to understand the map of their production and their movements across borders, i.e. the determinants of the fragmentation of their production process.
|Date of creation:||2002|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.crenos.unica.it/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Henry G. Overman & Stephen Redding & Anthony J. Venables, 2001.
"The economic geography of trade, production, and income: a survey of empirics,"
LSE Research Online Documents on Economics
3712, London School of Economics and Political Science, LSE Library.
- Overman, Henry G & Redding, Stephen J. & Venables, Anthony J, 2001. "The Economic Geography of Trade Production and Income: A Survey of Empirics," CEPR Discussion Papers 2978, C.E.P.R. Discussion Papers.
- Henry Overman & Stephen Redding & Anthony J. Venables, 2001. "The Economic Geography of Trade, Production, and Income: A Survey of Empirics," CEP Discussion Papers dp0508, Centre for Economic Performance, LSE.
- Keith Head & John Ries, 1998. "Immigration and Trade Creation: Econometric Evidence from Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 31(1), pages 47-62, February.
- Robert C. Feenstra & Gordon H. Hanson, 2004.
"Intermediaries in Entrepot Trade: Hong Kong Re-Exports of Chinese Goods,"
Journal of Economics & Management Strategy,
Wiley Blackwell, vol. 13(1), pages 3-35, 03.
- Gordon H. Hanson & Robert C. Feenstra, 2001. "Intermediaries in Entrepot Trade: Hong Kong Re-Exports of Chinese Goods," NBER Working Papers 8088, National Bureau of Economic Research, Inc.
- Robert Feenstra & Gordon Hanson, 2001. "Global Production Sharing and Rising Inequality: A Survey of Trade and Wages," NBER Working Papers 8372, National Bureau of Economic Research, Inc.
- Michaël Freudenberg & Françoise Lemoine, 1999. "Central and Eastern European Countries in the International Division of Labour in Europe," Working Papers 1999-05, CEPII research center.
- Gene M. Grossman & Elhanan Helpman, 2002.
"Outsourcing in a Global Economy,"
149, Princeton University, Woodrow Wilson School of Public and International Affairs, Discussion Papers in Economics..
- Grossman, Gene & Helpman, Elhanan, 2002. "Outsourcing in a Global Economy," CEPR Discussion Papers 3165, C.E.P.R. Discussion Papers.
- Gene M. Grossman & Elhanan Helpman, 2002. "Outsourcing in a Global Economy," NBER Working Papers 8728, National Bureau of Economic Research, Inc.
- Gene M. Grossman & Elhanan Helpman, 2002. "Outsourcing in a Global Economy?," Harvard Institute of Economic Research Working Papers 1966, Harvard - Institute of Economic Research.
- Grossman, G.M. & Helpman, E., 2002. "Outsourcing in a Global Economy," Papers 218, Princeton, Woodrow Wilson School - Public and International Affairs.
- James E. Rauch & Vitor Trindade, 2002.
"Ethnic Chinese Networks In International Trade,"
The Review of Economics and Statistics,
MIT Press, vol. 84(1), pages 116-130, February.
- Salvatore Baldone & Fabio Sdogati & Lucia Tajoli, 2001. "Patterns and determinants of international fragmentation of production: Evidence from outward processing trade between the EU and Central Eastern European countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 137(1), pages 80-104, March.
- van Schaik, Anton B. T. M. & de Groot, Henri L. F., 2002. "Macroeconomic consequences of downsizing," Economic Modelling, Elsevier, vol. 19(3), pages 331-352, May.
- Jose Campa & Linda S. Goldberg, 1997. "The Evolving External Orientation of Manufacturing Industries: Evidence from Four Countries," NBER Working Papers 5919, National Bureau of Economic Research, Inc.
- Arndt, Sven W., 1997. "Globalization and the open economy," The North American Journal of Economics and Finance, Elsevier, vol. 8(1), pages 71-79.
When requesting a correction, please mention this item's handle: RePEc:cns:cnscwp:200207. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Antonello Pau)
If references are entirely missing, you can add them using this form.