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Full-Text Articles in Social and Behavioral Sciences
Production Networks In An Economically Integrated Region, Sven W. Arndt
Production Networks In An Economically Integrated Region, Sven W. Arndt
CMC Faculty Publications and Research
This article discusses an approach to "open regionalism" based on regional production networks and component specialization. Component specialization, or intra-product trade, has been shown to be welfare-enhancing. It creates jobs and raises output by improving competitiveness. It is one of the innovative features of the current phase of globalization. It offers groups of small countries opportunities to make regionalism work in ways which the traditional European model does not. It is less discriminatory and less inward-looking than the European model. It stresses regulatory reform and the creation of a single market early in the process of regional economic integration. The …