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International Fragmentation of Production and Euro-Med Integration

  • Paolo Guerrieri
  • Filippo Vergara Caffarelli

When firms locate segments of their production process abroad we are in presence of international fragmentation of production. This paper discusses the issue both theoretically and empirically. We first assess the absence of a well-articulated and verified theoretical framework to explain the phenomenon in fullness. We then perform an analysis of economic integration patterns of South-Mediterranean countries with the European Union and compare the results with the performance of central and eastern European countries. The Mediterranean basin has the potential to host a considerable amount of European production-sharing networks. Yet the integration of firms from this region into such international networks appears to be still very modest.

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File URL: http://www.eui.eu/ERPA/RSCAS/../../RSCAS/WP-Texts/04_28.pdf
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File URL: http://www.eui.eu/ERPA/RSCAS/../../RSCAS/WP-Texts/04_28.pdf
File Function: Full text
Download Restriction: no

Paper provided by European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS) in its series EUI-RSCAS Working Papers with number 28.

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Date of creation: 15 Nov 2004
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Handle: RePEc:erp:euirsc:p0144
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  17. Burda, Michael C. & Dluhosch, Barbara, 2001. "Fragmentation, globalization and labor markets," SFB 373 Discussion Papers 2001,41, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
  18. David L. Hummels & Dana Rapoport & Kei-Mu Yi, 1998. "Vertical specialization and the changing nature of world trade," Economic Policy Review, Federal Reserve Bank of New York, issue Jun, pages 79-99.
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