Fragmentation and parts and components trade in the Western Balkan countries
comunitat-uji-handle:10234/9
comunitat-uji-handle2:10234/8643
comunitat-uji-handle3:10234/8644
comunitat-uji-handle4:
INVESTIGACIONMetadata
Title
Fragmentation and parts and components trade in the Western Balkan countriesDate
2013Publisher
Taylor & FrancisISSN
1463-1377Type
info:eu-repo/semantics/articleVersion
info:eu-repo/semantics/submittedVersionAbstract
As a consequence of the increasing globalization and integration of the world’s
markets, there has been an intensive process of international fragmentation of
the production over the last few decades. This phenomenon ... [+]
As a consequence of the increasing globalization and integration of the world’s
markets, there has been an intensive process of international fragmentation of
the production over the last few decades. This phenomenon whereby previously
integrated productive activities are segmented and internationally spread is
reflected in the rapid increase in parts and components trade, growing at higher
rates than final goods trade. In this process, the Western Balkan countries
(WBC) have not been an exception. With their recent integration into the global
markets, the WBC have witnessed growth in parts and components trade that
has even exceeded the world average. This paper examines the determinants of
the trade that stems from the international fragmentation of production in the
WBC. Using a panel data set of disaggregated bilateral trade flows, we estimate
gravity equations for the period 2000-2009. Our findings support the hypothesis
drawn from the theory of fragmentation that trade in parts and components is
motivated by labor cost differences and by geographical and proximity reasons.
The relevance of additional service link costs, as well as the influence of
institutional similarity and infrastructure quality or political-economic agreements
is also confirmed by our empirical research. [-]
Is part of
Post-Communist Economies, vol. 25, n. 3, p. 371-391Rights
http://rightsstatements.org/vocab/CNE/1.0/
info:eu-repo/semantics/openAccess
info:eu-repo/semantics/openAccess
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- ECO_Articles [697]