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- W1488631698 abstract "We show that the growth of the service sector facilitates outsourcing, or fragmentation of production. Services link production blocks, and allows the breaking up of integrated production. The cost of aggregate service decreases as the number of specialized services increases. A country with a greater number of specialized services tends to export components that are service-intensive. When international trade in specialized services are permitted, the country with an advanced service sector will outsource most of the manufacturing activities. Thus free trade in specialized services tends to increase fragmentation. On the other hand, if there are high transport costs with a bias against complex specialized services, then free trade in specialized services may work against fragmentation. On montre que la croissance du secteur des services facilite la fragmentation de la production. Les services relient les blocs de production et permettent la dispersion de la production integree. Un pays possedant un grand nombre de services specialises a tendance a exporter les pieces dont la production utilise intensement les services. Avec la liberalisation de l'echange des services, les pays possedant un secteur de services avance tendent a impartir la fabrication des pieces. Par consequent, la liberalisation du commerce augmente la fragmentation. Par contre, si les couts de transport sont eleves pour les services les plus complexes, le libre echange des services specialises peut reduire la fragmentation." @default.
- W1488631698 created "2016-06-24" @default.
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- W1488631698 date "2001-06-01" @default.
- W1488631698 modified "2023-09-27" @default.
- W1488631698 title "Fragmentation, Outsourcing and the Service Sector" @default.
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