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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....
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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....
Persistent link: https://www.econbiz.de/10001554664