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develop an endogenous growth model to study the long run consequences of offshoring with firm heterogeneity and … incomplete contracts. In so doing, we model offshoring as the geographical fragmentation of a firm’s production chain between a … possibility of offshoring has favorable implications for economic growth. Yet, offshoring induced by a higher bargaining power of …
Persistent link: https://www.econbiz.de/10008683426
We study the short- and long-run implications of offshoring on innovation, technology adoption, wage and income …-abundant West to a skill-scarce East. Profit maximization determines both the extent of offshoring and technological progress …. offshoring induces technical change with an ambiguous factor bias. When the initial level of offshoring is low, an increase in …
Persistent link: https://www.econbiz.de/10010950605
In this paper, we assess the extent of offshoring in the Italian manufacturing industries, and we study how this … phenomenon is affecting the skill composition of employment. Measuring offshoring using the import-use matrices of input …-output tables, firstly we estimate the impact of offshoring on the general level of employment, and we don’t find any significant …
Persistent link: https://www.econbiz.de/10005087121
We argue that, with an elasticity of substitution in consumption greater than one and higher scale economies in the skill-intensive sectors, the entire volume of world trade matters for wage inequality. This implies that trade integration, even among identical countries, is likely to increase...
Persistent link: https://www.econbiz.de/10005087096
Under plausible assumptions about preferences and technology, the model in this paper suggests that the entire volume of world trade matters for wage inequality. Therefore, trade integration, even among identical countries, is likely to increase the skill premium. Further, we argue that...
Persistent link: https://www.econbiz.de/10010547181