We examine the effects of endogenous offshoring on cost-efficiency, wages and unemployment in a task assignment model with skill heterogeneity. Exact conditions for the following insights are derived. The distributional effect of offshoring high- low-skill-intensive tasks is similar to...

The debate about the Prebisch-Singer thesis has focused on primary commodities with some extensions to manufactured goods. We analyse trends in country terms-of-trade for goods and services rather than those for commodities according to the World Bank income classification. We find that the...

This paper develops a model positing a nonlinear relationship between public investment and growth. The model is then applied to a panel of African countries using nonlinear estimating procedures. The growth-maximizing level of public investment is estimated at about 10 percent of GDP based on...

This paper offers a unified framework to explore both the static and dynamic welfare effects of trade and multinational production MP in the presence of firm-specific productivity heterogeneity. The model captures the dynamic effects by allowing for RD spillovers between firms in a framework of...

Immigration can help to lessen the burden of ageing for the welfare states of most Western economies. To show this, we develop a decomposition framework for Gross Domestic Product (GDP) per capita which deals with the impact of both ageing and immigration on economic growth. Using a Vector Error...