DP7523 Integration of the North American economy and new-paradigm globalisation

Author(s): Richard Baldwin

Publication Date: October 2009

Keyword(s): Globalisation , Trade in tasks , unbundling , industrial policy , supply chains

JEL(s): F14 , F21 , L5

Programme Areas: International Trade and Regional Economics

Link to this Page: www.cepr.org/pubs/dps/DP7523.asp

This paper presents the trade-in-tasks conceptual framework and extends it to consider a setting where offshoring occurs between high wage nations and where agglomeration forces are important. It also considers the policy implications ranging from rules of origin and trade facilitation to external trade policy and R&D subsidies. The focus is on policy initiatives that could support the development of North American production platforms.