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Relocating the value chain: off-shoring and agglomeration in the global economy

Abstract:

Fragmentation of stages of the production process is determined by international cost differences and by the benefits of co-location of related stages. The interaction between these forces depends on the technological relationships between these stages. This paper looks at both cost minimising and equilibrium fragmentation under different technological configurations. Reductions in trade costs beyond a threshold can result in discontinuous changes in location, with relocation of a wide ran...

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Publication status:
Published

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Publisher:
University of Oxford
Series:
Department of Economics Discussion Paper Series
Publication date:
2011-03-01
Paper number:
544
Keywords:
Pubs id:
451515
Local pid:
pubs:451515
Deposit date:
2020-12-14

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