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Fragmentation, skill formation and international capital mobility
S. Mitra,
Published in World Scientific Publishing Co. Pte Ltd
Volume: 65
Issue: 2
Pages: 335 - 350
During the last few decades an important feature of the on-going process of globalization is production fragmentation. Owing to the growing importance of international fragmentation of production processes the composition of international trade has indeed altered in recent years. Here we want to focus on production fragmentation which actually implies that the requirement for the intermediate goods can be met by producing it domestically or it can be imported from abroad. In this paper we want to examine the probable causes for a developing economy to switchover from a regime of no fragmentation to fragmentation. Here the impact of such a regime change has also been examined on wage inequality as well as on the incidence of skill formation within the economy. Moreover, we have examined here the impact of perfect international capital mobility on the economy in the context of regime change between fragmentation and no fragmentation. © 2020 World Scientific Publishing Company.
About the journal
JournalSingapore Economic Review
PublisherWorld Scientific Publishing Co. Pte Ltd