Showing 1 - 10 of 63
The division of labor between and within countries is driven by two fundamental forces, comparative advantage and increasing returns. We set up a simple Ricardian model with a Marshallian input sharing mechanism to study their interplay. The key insight that emerges is that the interaction...
Persistent link: https://www.econbiz.de/10011543995
The various channels through which a reduction in the cost of offshoring can improve wages in a developed country are … by now well understood. But does a similar reduction in the offshoring cost also benefit workers in the world's factories … in developing countries? Using a parsimonious two-country model of offshoring we find very nuanced results. These include …
Persistent link: https://www.econbiz.de/10011480815
multinationals, are less likely to rely on imported or internally provided services. -- International trade ; services ; off-shoring …
Persistent link: https://www.econbiz.de/10003937886
This paper concerns public input provision as an instrument for redistribution under international outsourcing by using … the provision of public input goods in response to international outsourcing, and (ii) whether international outsourcing … justifies policy cooperation. If the public input good is substitutable for (complementary with) outsourcing in terms of the …
Persistent link: https://www.econbiz.de/10003932133
We construct a model of offshoring with externalities and firm heterogeneity. Due to the presence of externalities …, temporary shocks like the Y2K problem can have permanent effects, i.e., they can permanently raise the extent of offshoring in … an industry. Also, the initial advantage of a country as a potential host for outsourcing activities can create a lock in …
Persistent link: https://www.econbiz.de/10003596092
Barriers to outsourcing that are being currently implemented in the US effectively tax its companies who "export" jobs … through outsourcing. The objective is to raise domestic employment. Given that many of the important international markets … oligopolistic context. We find that while an outsourcing tax favors domestic workers by causing firms to switch to a greater use of …
Persistent link: https://www.econbiz.de/10009124754
We examine the determinants of the decision to relocate activities abroad for firms located in OECD countries. We argue that particular firm-specific features play a crucial role for the link between employment protection and relocation. Stricter employment protection laws over time in the...
Persistent link: https://www.econbiz.de/10011853748
organizational decision is driven by two countervailing effects: the ownership rights effect favors outsourcing, while the "indirect … outsourcing of the "less important" supplier is chosen in equilibrium. We also consider an open economy setup where the producer … decides whether to offshore inputs. -- multinational firms ; outsourcing ; intra-firm trade ; property rights approach …
Persistent link: https://www.econbiz.de/10009539235
In this paper we survey the recent empirical literature on the effects of offshoring on wage, employment and … displacement. We start with an overview of the measurement of offshoring, organizing our discussion around the three key elements … of offshoring: that it involves intermediate inputs for production (vs. final goods for consumption); that it involves …
Persistent link: https://www.econbiz.de/10011452576
offshoring on the labor market can substantially deviate from standard neoclassical conclusions when search frictions hinder … exploiting offshoring. It implies that automation (offshoring) may reduce (raise) employment by lengthening (shortening …
Persistent link: https://www.econbiz.de/10012222391