Fragmentation of the value-added-chain is modeled as the reaction of monopolistically competitive firms to the removal of barriers to trade and factor mobility in an integrated trading environment. Since fragmentation requires high-skilled labor, this form of globalization can induce labor...

This paper proposes a model in which the removal of barriers to trade and factor mobility is associated with endogenous fragmentation of the value-added chain. Fragmentation is the outcome of cost competition - the profit-maximizing choice of cost structure by monopolistically competitive firms....

This paper addresses the following research questions: i) are firms characterized by international linkages more productive than other firms? ii) are those belonging to industries more involved in GVCs even more productive? To this end, we combine the WB Enterprise Survey dataset with the new...

In this paper we compute price/quality gap indicators to measure vertical intra-iundustry trade (VIIT) in EU markets at 3-digit NACE industry level. These indicators are then used to test some hypotheses relative to the determinants of the quality of trade of Central and Eastern European...

This paper is an investigation on the main changes observed in the Italian trade with a group of Eastern European economies over the period 1988-1997, during which Italy has become the second EU trade partner for Eastern Europe after Germany. Eastern European countries show patterns of...