Since the late 1970s, the Chinese judiciary has undergone a continuous reform process of professionalization and institutionalization. Despite the political constraints, there are sufficient opportunities and incentives to continue China's judicial reform so as to enhance judicial capacity and...

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....