Bonham, Carl; Gangnes, Byron; Assche, Ari Van - Department of Economics, University of Hawaii-Manoa - 2004
argue that the rise of IT trade must be understood within the context o increasing vertical fragmentation of production … fragmentation. We apply a panel cointegration approach that allows for heterogeneity in short-run dynamics and in fixed effects …. Consistent with production fragmentation, we find that the evolution of IT trade can be explained in part by traditional income …