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Offshoring to a developing nation with a dual labor market

Bandyopadhyay, Subhayu; Basu, Arnab K.; Chau, Nancy H.; … - 2020

improvements in the informal sector expand both offshoring and outsourcing, and the developed nation wage must rise. When the …We present a model of offshoring of tasks to a developing nation, which is characterized by a minimum wage formal … informal sector. An improvement in the productivity in performing offshored tasks in the developing country raises offshoring …

Persistent link: https://www.econbiz.de/10012242847

On trade policy preference and offshoring ties

Bandyopadhyay, Subhayu; Basu, Arnab K.; Chau, Nancy H.; … - 2022

This paper unpacks the role of the domestic content of imports as a novel source of policy interdependence along the global supply chain. We show how a rise in local contents embodied in imports can skew national trade policy preferences, and pull upstream and downstream countries in asymmetric...

Persistent link: https://www.econbiz.de/10013471205

Disentangling the wage impacts of offshoring on a developing country : theory and policy

Bandyopadhyay, Subhayu; Basu, Arnab K.; Chau, Nancy H.; … - 2016

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

The role of trade and offshoring in the determination of child labour

Cigno, Alessandro; Giovannetti, Giorgia; Sabani, Laura - 2015

Incorporating family decisions in a two-period-model of the world economy, we show that trade liberalization may reduce child labour in developing countries where the initial share of skilled workers in the adult workforce – though not as large as in developed countries – is nonetheless...

Persistent link: https://www.econbiz.de/10010488142

Does globalisation increase child labour?

Cigno, Alessandro; Rosati, Furio Camillo; Guarcello, Lorenzo - 2002

There is no empirical evidence that trade exposure per se increases child labour. As trade theory and household economics lead us to expect, the cross-country evidence seems to indicate that trade reduces or, at worst, has no significant effect on child labour. Consistently with the theory, a...

Persistent link: https://www.econbiz.de/10011410919

Why do foreign-owned-firms pay more? : the role of on-the-job training

Görg, Holger; Strobl, Eric; Walsh, Frank A. - 2002

Foreign-owned firms have consistently been found to pay higher wages than domestic firms to what appear to be equally productive workers in both developed and developing countries alike. Although a number of studies have documented and some attempted to explain this stylized fact, the issue...

Persistent link: https://www.econbiz.de/10011413654

Spillovers from foreign firms through worker mobility : an empirical investigation

Görg, Holger; Strobl, Eric - 2002

While there has been a large empirical literature on productivity spillovers from foreign to domestic firms this literature treats the channels through which these spillover effects work as a black box. This paper attempts to fill this gap in the literature. Our results suggest that firms which...

Persistent link: https://www.econbiz.de/10011413662

Spillovers through backward linkages from multinationals : measurement matters!

Barrios Cobos, Salvador; Görg, Holger; Strobl, Eric - 2009

We argue that the measures of backward linkages used in recent papers on spillovers from multinational companies are potentially problematic, as they depend on a number of restrictive assumptions, namely that (i) multinationals use domestically produced inputs in the same proportion as imported...

Persistent link: https://www.econbiz.de/10003903185

Multinational companies, backward linkages and labour demand elasticities

Görg, Holger; Henry, Michael; Strobl, Eric; Walsh, Frank A. - 2006

This paper investigates the link between nationality of ownership and wage elasticities of labour demand at the level of the plant. In particular, we examine whether labour demand in multinationals becomes less elastic with respect to the wage if the plant has backward linkages with the local...

Persistent link: https://www.econbiz.de/10003522908