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| Author: | Dluhosch, B. |
| Title: | Integration, fragmentation and the geography of welfare |
| Journal: | Scandinavian Journal of Economics
2006 : VOL. 108:3, p. 459-479 |
| Index terms: | economic integration intra-industry trade labour markets welfare economics |
| Language: | eng |
| Abstract: | This article examines the welfare effects of trade integration with endogenous production technology in a monopolistic competition framework. The analysis highlights the endogenous change in the cost of supervising fragmented production when economies open up to trade. It suggest that by regarding fragmentation as a skill-intensive activity, factor proportions strongly affect the international distribution of gains from trade. |
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