Global Production Networks and Regional Integration
This paper examines the implications of cross-border production fragmentation in the context of regional integration, using both general- and partial-equilibrium approaches. It shows the conditions under which fragmentation converts a trade-diverting FTA into a trade creating one. It assesses the effect of fragmentation on the balance of payments and the sensitivity of trade flows to exchange-rate changes.
|Date of creation:||2003|
|Date of revision:|
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Web page: http://lowe.claremontmckenna.edu/
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