20 Years of Arnoldshain Seminar
“20 Years of Challenges for Integration, Globalization, and Development”
September 14 – 18, 2015
Frankfurt and Arnoldshain / Taunus

Suárez, Celestino    
AbstracttitleThe Impact of International Fragmentation of Production on Economic Growth in the Western Balkan Countries
Coco-authored with Bojan Shimbov, Maite Alguacil
ShortabstractA clear consequence of the increasing integration of the world’s economies has been the internationalization of production. In this globalization process, the Western Balkan countries have not been an exception. With their recent integration into the global markets, an increasingly large share of their trade flows entails intermediate and unfinished goods that should be eventually processed and exported. Thus, the purpose of this work is twofold: on the one hand, to analyze the impact of international fragmentation of production on the economic performance of a country and on the other hand to test the hypothesis that trade created by international fragmentation of production may generate distinct effects on economic growth than trade in final goods. In the econometric analysis we employ a set of panel data models taking into consideration several control variables and alternative econometric methods. Given the availability of data, we focus on the period 2002-2013.