Arndt, Sven W. - Lowe Institute of Political Economy, Claremont McKenna … - 2003
This paper examines the implications of cross-border production fragmentation in the context of regional integration …, using both general- and partial-equilibrium approaches. It shows the conditions under which fragmentation converts a trade …-diverting FTA into a trade creating one. It assesses the effect of fragmentation on the balance of payments and the sensitivity of …