International Fragmentation of Production and Euro-Med Integration

Paolo Guerrieri and Filippo Vergara Caffarelli

No 28, EUI-RSCAS Working Papers from European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS)

Abstract: When firms locate segments of their production process abroad we are in presence of international fragmentation of production. This paper discusses the issue both theoretically and empirically. We first assess the absence of a well-articulated and verified theoretical framework to explain the phenomenon in fullness. We then perform an analysis of economic integration patterns of South-Mediterranean countries with the European Union and compare the results with the performance of central and eastern European countries. The Mediterranean basin has the potential to host a considerable amount of European production-sharing networks. Yet the integration of firms from this region into such international networks appears to be still very modest.

Keywords: East-Central Europe; international trade; Mediterranean (search for similar items in EconPapers)
Date: 2004-11-15
New Economics Papers: this item is included in nep-mac
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Citations: View citations in EconPapers (3)

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