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The New Economic Geography, as expounded by Krugman and others, highlights the importance of greater extent of agglomeration as incomes grow in the world economy. In this paper we suggest an alternative framework in which, as incomes grow, greater degrees of economic fragmentation and...

The Jones-Kierzkowski model of global fragmentation of production draws attention to the efficiency of 'service links' connecting 'production blocks' in different countries. Country-specific service links include transport and telecommunications infrastructure and the overall business climate....