This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

American Economic Review: Vol. 102 No. 3 (May 2012)

Expand

Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter

Explore:

AER - All Issues

AER Forthcoming Articles

Proximity and Production Fragmentation

Article Citation

Johnson, Robert C., and Guillermo Noguera. 2012. "Proximity and Production Fragmentation." American Economic Review, 102(3): 407-11.

DOI: 10.1257/aer.102.3.407

Abstract

Cross-border production chains tend to include geographically proximate countries. This suggests that increases in fragmentation should be largest among nearby trading partners, and thus may serve to localize gross trade. Using data on gross and value added trade from 1970-2009, we present three results supporting this conjecture. First, value added to export ratios are lower and falling more rapidly within geographic regions than between them. Second, gross trade travels shorter distances from source to destination than value added trade, and this gap is growing over time. Third, bilateral value added to export ratios have fallen most among nearby trading partners.

Article Full-Text Access

Full-text Article

Authors

Johnson, Robert C. (Dartmouth College)
Noguera, Guillermo (Columbia U)

JEL Classifications

M11: Production Management
F14: Country and Industry Studies of Trade
L14: Transactional Relationships; Contracts and Reputation; Networks


American Economic Review


Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

AER - All Issues

AER - Forthcoming Articles

Virtual Field Journals


AEA Member Login:


AEAweb | AEA Journals | Contact Us