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specialization of production stages. While increased trade is likely to in-duce fragmentation when the number of firms is fixed, free …
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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...
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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 …
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