Local Consequences of Global Production Processes

9 Pages Posted: 13 Jan 2015

See all articles by Steven Brakman

Steven Brakman

University of Groningen - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Charles van Marrewijk

Utrecht University - School of Economics

Mark Partridge

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics

Date Written: January 2015

Abstract

The financial crisis of 2008 not only started the Great Recession, but also set off fundamental changes in production processes, government fiscal practices, and housing. Technological progress has enabled firms to outsource and offshore parts of the production process, leading to a fragmentation of global value chains. We briefly discuss this “second unbundling,” global versus regional fragmentation and some of the consequences that became visible during the Great Recession's trade collapse. We discuss the consequences for some local clusters, both from a theoretical and empirical perspective, and some consequences for government fiscal health and housing from an American perspective.

Suggested Citation

Brakman, Steven and van Marrewijk, Charles and Partridge, Mark D., Local Consequences of Global Production Processes (January 2015). Journal of Regional Science, Vol. 55, Issue 1, pp. 1-9, 2015. Available at SSRN: https://ssrn.com/abstract=2548815 or http://dx.doi.org/10.1111/jors.12179

Steven Brakman (Contact Author)

University of Groningen - Department of Economics ( email )

P.O. Box 800
9700 AV Groningen
Netherlands
+31 50 363 3746 (Phone)
+31 50 363 3730 (Fax)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Charles Van Marrewijk

Utrecht University - School of Economics ( email )

Kriekenpitplein 21-22
Adam Smith Building
Utrecht, 3584 EC
Netherlands
*31-(0)30-2539810 (Phone)

HOME PAGE: http://www.charlesvanmarrewijk.nl

Mark D. Partridge

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics ( email )

2120 Fyffe Rd
Columbus, OH 43210-1067
United States

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