IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Vertical specialisation and new regionalism

Listed author(s):
  • Lopez Gonzalez, Javier

The increased spread in the location of value added coupled with the growing impetus for new forms of bilateral integration are re-shaping international economic activity. The world is becoming more regional and more fragmented but little empirical work has been dedicated to examining the nature of the links between these processes. This thesis aims to fill this gap in the literature. The primary aim of the first essay of this thesis is to extend current indicators of international production so that the bilateral degree of vertical specialisation can be captured. This has been one of the major hurdles in examining the links between vertical specialisation and Free Trade Agreements (FTAs). The comparative static analysis of this first essay reveals that there appears to be a high incidence of regional value chain activity and this motivates the aims of the second essay. It attempts to isolate the impact of an FTA on these flows through a theoretically derived gravity model of input trade. The results suggest that an FTA increases the use of intermediate inputs that are part of a bilateral value chain by 65%. Moreover, the results identify the presence of ‘magnification’ which implies that this type of trade is also more responsive to changes in trade costs and income variables. The third essay then looks at how the changing nature of trade affects the formation of new FTAs. It suggests that the propagation of international production alters the political economy dynamics of countries towards favouring further liberalisation. It also identifies regulatory quality and a growing FTA ‘contagion’ as determinants of new FTAs.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://sro.sussex.ac.uk/id/eprint/43255
Download Restriction: no

Paper provided by Department of Economics, University of Sussex in its series Economics PhD Theses with number 0212.

as
in new window

Length:
Date of creation: Jan 2012
Handle: RePEc:sus:susphd:0212
Contact details of provider: Postal:
Jubilee Building G08, Falmer, Brighton, BN1 9SL

Phone: +44 (0) 1273 678889
Fax: +44 (0)1273 873715
Web page: http://www.sussex.ac.uk/economics
Email:


More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:sus:susphd:0212. 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: (Russell Eke)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.