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International Fragmentation and Agglomeration: From Theory to Empirics

  • Marco Giansoldati


    (Department of Economics, University Of Venice Cà Foscari)

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    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.

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    Paper provided by Department of Economics, University of Venice "Ca' Foscari" in its series Working Papers with number 2010_06.

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    Length: 27
    Date of creation: 2010
    Date of revision:
    Handle: RePEc:ven:wpaper:2010_06
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    1. Robert Feenstra, 2003. "Integration Of Trade And Disintegration Of Production In The Global Economy," Working Papers 986, University of California, Davis, Department of Economics.
    2. Stephen Nickell & D Nicolitsas, 1994. "Wages," CEP Discussion Papers dp0219, Centre for Economic Performance, LSE.
    3. Kimura, Fukunari & Takahashi, Yuya & Hayakawa, Kazunobu, 2007. "Fragmentation and parts and components trade: Comparison between East Asia and Europe," The North American Journal of Economics and Finance, Elsevier, vol. 18(1), pages 23-40, February.
    4. James R. Markusen & Anthony J. Venables, 1995. "Multinational Firms and The New Trade Theory," NBER Working Papers 5036, National Bureau of Economic Research, Inc.
    5. Ando, Mitsuyo, 2006. "Fragmentation and vertical intra-industry trade in East Asia," The North American Journal of Economics and Finance, Elsevier, vol. 17(3), pages 257-281, December.
    6. Dr. Mitsuyo ANDO & Dr. Fukunari Kimura, 2009. "Fragmentation in East Asia: Further Evidence," Working Papers DP-2009-20, Economic Research Institute for ASEAN and East Asia (ERIA).
    7. Athukorala, Prema-chandra & Yamashita, Nobuaki, 2006. "Production fragmentation and trade integration: East Asia in a global context," The North American Journal of Economics and Finance, Elsevier, vol. 17(3), pages 233-256, December.
    8. Kimura, Fukunari & Ando, Mitsuyo, 2005. "Two-dimensional fragmentation in East Asia: Conceptual framework and empirics," International Review of Economics & Finance, Elsevier, vol. 14(3), pages 317-348.
    9. Jones, Ronald & Kierzkowski, Henryk & Lurong, Chen, 2005. "What does evidence tell us about fragmentation and outsourcing?," International Review of Economics & Finance, Elsevier, vol. 14(3), pages 305-316.
    10. 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, vol. 137(1), pages 80-104, March.
    11. Ethier, Wilfred J, 1986. "The Multinational Firm," The Quarterly Journal of Economics, MIT Press, vol. 101(4), pages 805-33, November.
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