What does evidence tell us about fragmentation and outsourcing
By R. Jones, H. Kierzkowski, Lurong Chen. 2005
256 citations recorded by the source corpus.
Abstract International production networks have emerged in a manifold of industries and products: sports footwear, mobile phones, cars, clothing, computers, and furniture to name only a few. While there obviously are agglomeration forces operating in some areas, dispersion of economic activities is also a fact of life. One of the consequences of disagglomeration manifests itself in a rapid expansion of international trade in parts and components. We look at the empirical evidence demonstrating trends regarding disagglomeration of production on a regional or global basis. We also test two hypotheses stemming from our joint work on fragmentation of production: • Growth of the world economy increases the degree of fragmentation. • As services become cheaper and more readily available, international trade in parts and components expands.
Subfields: Economics and Econometrics, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/cb8cbc7c9f81ce43a137ca3ed027210a959c8e2b
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In Economics and Econometrics
In Strategy and Management
Citations in the corpus
- Production fragmentation and trade integration: East Asia in a global context (2006, background): “…is also consistent with the theory of international production fragmentation, which predicts that the optimal degree of fragmentation depends on the size of the market because the scale of production would determine the length to which such division of labour can proceed (Jones et al. 2004).”
- Vertical specialization across the world: a relative measure (2009, background): “One of the factors underlying the high growth rate of international trade over the past two decades is the division of the production chain, with different stages of production located in different countries (see Yi (2003) and Jones et al. (2005)).”