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Georg-August-Universität Göttingen >
cege - Centrum für Europa-, Governance- und Entwicklungsforschung, Universität Göttingen >
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http://hdl.handle.net/10419/31977
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| Title: | | Does globalization lead to specialization?  |
| Authors: | | Eckel, Carsten |
| Issue Date: | | 2003 |
| Series/Report no.: | | CeGE Discussion Paper 20 |
| Abstract: | | The relationship between market integration and the degree of specialization plays a key role in many areas of economics. In contrast to previous studies, we illustrate that globalization does not necessarily lead to specialization. The analysis is conducted in an extended Dixit-Stiglitz- Ethier framework. Whether globalization leads to specialization or to more integrated production structures depends on characteristics of the cost function and on firm behavior. By comparing these changes to the optimal degree of specialization we show that globalization can reduce the efficiency of the industrial structure. |
| Subjects: | | Fragmentation Specialization Market Integration Globalization Vertical Equilibrium Economies of Scale |
| JEL: | | F12 L11 L22 |
| Document Type: | | Working Paper |
| Appears in Collections: | | cege-Diskussionspapiere, Universität Göttingen
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