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International Fragmentation and Agglomeration: From Theory to Empirics

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  • Marco Giansoldati

    (Department of Economics, University Of Venice C� Foscari)

Abstract

This paper deals with fragmentation both theoretically and empirically. Not only it presents a picture of the existing literature on the field but it also provides some basic hints for future investigation. It pays particular attention to the possible theoretical dichotomy between fragmentation and agglomeration, whilst supplying empirical evidence in support of their coexistence. Moreover, the paper focuses on the linkages between fragmentation and trade, with an emphasis on vertical intra-industry trade in intermediates. Eventually, the contribution stresses that much more attention should be paid on how fragmentation shapes the role of industrial districts within the international organisation of production. Further investigation from different strands of literature (GVCs and GPNs) is needed to shed some light on the role of local production systems in the global architecture of manufactures.

Suggested Citation

  • Marco Giansoldati, 2010. "International Fragmentation and Agglomeration: From Theory to Empirics," Working Papers 2010_06, Department of Economics, University of Venice "Ca' Foscari".
    • Handle: RePEc:ven:wpaper:2010_06
    as

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    References listed on IDEAS

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    5. Salvatore Baldone & Fabio Sdogati & Lucia Tajoli, 2001. "Patterns and determinants of international fragmentation of production: Evidence from outward processing trade between the EU and Central Eastern European countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 137(1), pages 80-104, March.
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    More about this item

    Keywords

    Fragmentation; agglomeration; intra-industry trade; Global Value Chains; Global Production Networks;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements

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