Vertical specialization with developed and developing countries

Don Clark

Journal of Developing Areas, 2010, vol. 43, issue 2, 327-339

Abstract: This paper investigates country and industry-level determinants of vertical specialization-based production and trade between the United States and both developed and developing countries. Industries engaged in vertical specialization are identified through their use of offshore assembly provisions in the U.S. tariff code. The main difference between developed and developing countries is that educational attainment of the workforce exerts a positive effect on vertical specialization with developed countries and a negative effect with developing countries. Most industry-level determinants exert similar influences on the decision to conduct vertical specialization with developed and developing countries. Global firms must choose between developed and developing countries when deciding where parts and components will be produced and where final products will be manufactured.

Keywords: Vertical Specialization; Coproduction Arrangements; Offshore Assembly (search for similar items in EconPapers)
JEL-codes: F0 F1 (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://muse.jhu.edu/journals/journal_of_developing_areas/v043/43.2.clark.html

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jda:journl:vol.43:year:2010:issue2:pp:327-339

Access Statistics for this article

More articles in Journal of Developing Areas from Tennessee State University, College of Business Contact information at EDIRC.
Bibliographic data for series maintained by Abu N.M. Wahid ().