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Book Chapter


Economics (CMC)

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The rest of the chapter is organized as follows. Section 2 lays out the basic argument in a standard general equilibrium framework, while Section 3 examines key welfare effects of joint production in a partial equilibrium framework. Section 4 studies the effect of production sharing on the exchange-rate sensitivity of trade and discusses alternative measurements of the balance of trade. Section 5 deals with the real-exchange-rate effects of an investment cycle associated with the implementation of joint production. Section 6 considers exchange-rate regime choice. Section 7 concludes.


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© 2004 Edward Elgar Publishing Ltd.

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