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Globalisation and Fragmentation: Evidence from the Electronics Industry in Ireland

This paper examines fragmentation and globalisation in the context of the electronics industry in Ireland. Fragmentation refers to the breaking-up of vertically integrated production processes into various components. We find empirical evidence of fragmentation in a number of data sources. Data on inward processing trade indicate that production in the Irish electronics industry is globally fragmented, and that the scale of such fragmented production is growing. Furthermore, Ireland's share of fragmentation is rising faster than that in the EU generally, especially in the electronics industry. Other firm survey data show that the scale of local fragmentation has risen relative to global fragmentation as firms in different Irish intermediate goods producing sectors trade increasingly on the local Irish market. Looking more specifically at the computer manufacturing sector, we find evidence of fragmented production in this sector in that the ratio of bought-in materials to total sales has risen significantly over the past decade.

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File URL: http://www.tcd.ie/Economics/TEP/1999_papers/TEPNo11HG99.pdf
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Paper provided by Trinity College Dublin, Department of Economics in its series Trinity Economics Papers with number 9911.

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Date of creation: 1999
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Handle: RePEc:tcd:tcduee:9911
Contact details of provider: Postal: Trinity College, Dublin 2
Phone: (+ 353 1) 6081325
Fax: 6772503
Web page: http://www.tcd.ie/Economics/
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  1. Holger Görg & Frances Ruane, 1998. "Linkages between Multinationals and Indigenous Firms: Evidence for the Electronics Sector in Ireland," Economics Technical Papers 9813, Trinity College Dublin, Department of Economics.
  2. Jones, Ronald W & Engerman, Stanley L, 1996. "Trade, Technology, and Wages: A Tale of Two Countries," American Economic Review, American Economic Association, vol. 86(2), pages 35-40, May.
  3. Dermot McAleese, 1998. "Global Integration, Factor Mobility and EMU: Implications for the Irish Economy," Economics Policy Papers 981, Trinity College Dublin, Department of Economics.
  4. Krugman, Paul & Venables, Anthony J., 1995. "Globalization and the Inequality of Nations," Working Paper Series 430, Research Institute of Industrial Economics.
  5. Barry, Frank & Bradley, John, 1997. "FDI and Trade: The Irish Host-Country Experience," Economic Journal, Royal Economic Society, vol. 107(445), pages 1798-1811, November.
  6. Paolo Figini & Holger Görg, 1998. "Multinational Companies and Wage Inequality in the Host Country: The Case of Ireland," Economics Technical Papers 9816, Trinity College Dublin, Department of Economics.
  7. Markusen, James R. & Venables, Anthony J., 1999. "Foreign direct investment as a catalyst for industrial development," European Economic Review, Elsevier, vol. 43(2), pages 335-356, February.
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