Asymmetric globalization and specialization

This paper constructs a theoretical framework to analyze the impact of international openness of the relatively big globalizers on specialization. In contrast to the conventional positive effect of market size on specialization, we show market expansion induced by asymmetric globalization may decrease the level of specialization in terms of components. In addition, the number of components produced in the big globalizers may also decrease, a case distinct from the conventional home-market effects.