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Integration Of Trade And Disintegration Of Production In The Global Economy

  • Robert C. Feenstra

The last few decades have seen a spectacular integration of the global economy through trade. The rising integration of world markets has brought with it a disintegration of the production process, however, as manufacturing or services activities done abroad are combined with those performed at home. I compare several different measures of foreign outsourcing, and argue that they have all increased since the 1970s. I also consider the implications of globalization for employment and wages of low-skilled workers, and for trade and regulatory policy, such as labor standards.

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Paper provided by California Davis - Department of Economics in its series Department of Economics with number 98-06.

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Handle: RePEc:fth:caldec:98-06
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