VERTICAL SPECIALIZATION IN THE PRODUCTION ACROSS COUNTRIES
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In this article we analyze the incentives for a vertical collaboration between producers in different countries. That is between producers in developed as well as in developing country. The purpose is to combine the two kinds of vertical specialization in one analytical framework. The new and quitecentral distinction from earlier contributions is that we take into account that in every link ofthe production process there is an exactly defined need ofan intermediate good according to a certain kind ofspecification
Abstract
In this article we analyze the incentives for a vertical collaboration between producers in different countries. That is between producers in developed as well as in developing country. The purpose is to combine the two kinds of vertical specialization in one analytical framework. The new and quitecentral distinction from earlier contributions is that we take into account that in every link ofthe production process there is an exactly defined need ofan intermediate good according to a certain kind ofspecification