 Globalization and the evoluton of the supply chain: WHO gains and who loses?Masahisa Fujita and Jacques Thisse Post-Print from HAL Abstract: This article focuses on two distinct facets of globalization: decrease in the trade costs of goods and the decline of communication costs between headquarters and production facilities. When the unskilled have about the same wage in two regions, decrease of these costs fosters the agglomeration of plants in the core accommodating headquarters. When the wage gap is significant, process of integration eventually triggers the relocation of plants into the periphery. When this process of relocation is driven by falling communication costs, the welfare of all workers in the core falls whereas that in the periphery rises. Date: 2006-08 Published in International Economic Review, 2006, 47 (3), pp.811-836. ⟨10.1111/j.1468-2354.2006.00397.x⟩ There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00754139 DOI: 10.1111/j.1468-2354.2006.00397.x Access Statistics for this paper More papers in Post-Print from HAL |
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