Telekomspecialisering i Östra Europa - Integrationens betydelse för en produktionsfragmenterad industri

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One of the most distinguishing features of contemporary globalisation is production fragmentation, a splitting up of the manufacturing of a good into several different stages. Production fragmentation creates new opportunities through vertical specialization; a country incapable of mastering the entire production process may specialize in the manufacturing of one separate part. The aim of this thesis is to examine to what extent international integration affects a country??s ability to engage in vertical specialization in an industry characterized by production fragmentation. The analysis focuses on the european integration process over the last decade, where countries in eastern Europe with relatively low labour costs have been integrated with more capital abundant western economies. The sector examined is telecommunication, an industry permeated with a far-reaching fragmentation of the production process. The result indicate that the degree of integration, defined as a reduction of the transaction co...