Economic integration agreements and production fragmentation: evidence on the extensive margin

Juan Blyde, Alejandro Graziano and Christian Volpe Martincus

Applied Economics Letters, 2015, vol. 22, issue 10, 835-842

Abstract: In this article we present evidence on the impact of economic integration agreements (EIAs) on production fragmentation based on a direct measure of offshoring: the number of vertically integrated foreign subsidiaries located in partner countries. We find that EIAs favour the formation of cross-border production networks. Further, this effect is stronger when agreements are deeper.

Date: 2015
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DOI: 10.1080/13504851.2014.980569

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