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Fragmentarea internaţională a producţiei. Fenomenul perfecţionării active: un "rău necesar" sau o şansă pentru România?
[International fragmentation of production. The inward processing trade phenomenon: a necessary evil or a chance for Romania?]


  • Georgescu, George


Accelerated globalization has shown a new significant dimension of intermediate goods cross border flows, led mainly by multinational companies searching competitiveness gains through international fragmentation of production and delocalization on international value-added chains. The related goods, making the object of inward/outward processing trade, even if they have a declared custom value do not involve financial flows (except for fees for processing). Because of their high nominal values that inflates the foreign trade figures, for analytical purposes, including the revealing the BoP current account real financial flows, their separate examination has become of crucial importance. In the case of Romania, favored by the low level of labor costs, the inward processing phenomenon is already a quasi-dominant component of trade (almost two thirds of total exports and one third of total imports). The risks for Romania of this phenomenon high volatility could be reversed by taking over its technological advance and know-how.

Suggested Citation

  • Georgescu, George, 2003. "Fragmentarea internaţională a producţiei. Fenomenul perfecţionării active: un "rău necesar" sau o şansă pentru România? [International fragmentation of production. The inward processing t," MPRA Paper 58406, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:58406

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    References listed on IDEAS

    1. Paul Brenton & Miriam Manchin, 2003. "Making EU Trade Agreements Work: The Role of Rules of Origin," The World Economy, Wiley Blackwell, vol. 26(5), pages 755-769, May.
    2. 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.
    3. Giovanni Balcet & Giampaolo Vitali, 2000. "Multinational Strategies and Outward-Processing Trade between Italy and the CEECs: The Case of Textile-Clothing," CERIS Working Paper 200015, Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY -NOW- Research Institute on Sustainable Economic Growth - Moncalieri (TO) ITALY.
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    More about this item


    globalization; competitiveness; delocalization; international fragmentation of production; global value-added chains; inward/outward processing trade; IPT volatility;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General


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