Relocating the value chain: off-shoring and agglomeration in the global economy.
Fragmentation of stages of the production process is determined by international cost differences and by the benefits of co-location of related stages. The interaction between these forces depends on the technological relationships between these stages. This paper looks at both cost minimising and...
| Main Authors: | , |
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| Format: | Working paper |
| Language: | English |
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Department of Economics (University of Oxford)
2011
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| _version_ | 1797092134763888640 |
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| author | Baldwin, R Venables, A |
| author_facet | Baldwin, R Venables, A |
| author_sort | Baldwin, R |
| collection | OXFORD |
| description | Fragmentation of stages of the production process is determined by international cost differences and by the benefits of co-location of related stages. The interaction between these forces depends on the technological relationships between these stages. This paper looks at both cost minimising and equilibrium fragmentation under different technological configurations. Reductions in trade costs beyond a threshold can result in discontinuous changes in location, with relocation of a wide range of production stages. There can be overshooting (off-shoring that is reversed as costs fall further) and equilibrium may involve less off-shoring than is efficient. |
| first_indexed | 2024-03-07T03:41:57Z |
| format | Working paper |
| id | oxford-uuid:be348a75-34c1-4eb9-ad80-68f38071c699 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-07T03:41:57Z |
| publishDate | 2011 |
| publisher | Department of Economics (University of Oxford) |
| record_format | dspace |
| spelling | oxford-uuid:be348a75-34c1-4eb9-ad80-68f38071c6992022-03-27T05:37:28ZRelocating the value chain: off-shoring and agglomeration in the global economy. Working paperhttp://purl.org/coar/resource_type/c_8042uuid:be348a75-34c1-4eb9-ad80-68f38071c699EnglishDepartment of Economics - ePrintsDepartment of Economics (University of Oxford)2011Baldwin, RVenables, AFragmentation of stages of the production process is determined by international cost differences and by the benefits of co-location of related stages. The interaction between these forces depends on the technological relationships between these stages. This paper looks at both cost minimising and equilibrium fragmentation under different technological configurations. Reductions in trade costs beyond a threshold can result in discontinuous changes in location, with relocation of a wide range of production stages. There can be overshooting (off-shoring that is reversed as costs fall further) and equilibrium may involve less off-shoring than is efficient. |
| spellingShingle | Baldwin, R Venables, A Relocating the value chain: off-shoring and agglomeration in the global economy. |
| title | Relocating the value chain: off-shoring and agglomeration in the global economy.
|
| title_full | Relocating the value chain: off-shoring and agglomeration in the global economy.
|
| title_fullStr | Relocating the value chain: off-shoring and agglomeration in the global economy.
|
| title_full_unstemmed | Relocating the value chain: off-shoring and agglomeration in the global economy.
|
| title_short | Relocating the value chain: off-shoring and agglomeration in the global economy.
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| title_sort | relocating the value chain off shoring and agglomeration in the global economy |
| work_keys_str_mv | AT baldwinr relocatingthevaluechainoffshoringandagglomerationintheglobaleconomy AT venablesa relocatingthevaluechainoffshoringandagglomerationintheglobaleconomy |