Production Sharing and Regional Integration

Sven Arndt ()
Additional contact information
Sven Arndt: Lowe Institute of Political Economy, Claremont McKenna College

No 203, Working Papers from Lowe Institute of Political Economy

Abstract: Preferential trade agreements between dissimilar economies are known to encourage inter-industry specialization, but when they take place between developed and developing countries, they also change the nature of intra-industry trade by facilitating cross-border production sharing. When such arrangements liberalize foreign direct investment as well as trade, production is internationalized and component or intra-product trade increases. Using a standard trade model, this paper derives the conditions under which integration of this type improves competitiveness and raises employment, output, and welfare.

Keywords: component trade; open regionalism; preferential trade liberalization; production networks (search for similar items in EconPapers)
JEL-codes: F11 F15 F23 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2002
References: Add references at CitEc
Citations:

Downloads: (external link)
http://lowe.claremontmckenna.edu/pdf/WP02-03.pdf (application/pdf)

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:loi:wpaper:0203

Access Statistics for this paper

More papers in Working Papers from Lowe Institute of Political Economy Contact information at EDIRC.
Bibliographic data for series maintained by Alex Huemer ( this e-mail address is bad, please contact ).