Showing 1 - 10 of 604
A simple model of offshoring, which depicts offshoring as ‘shadow migration,’ permits straightforward derivation of … necessary and sufficient conditions for the effects on wages, prices, production and trade. We show that offshoring requires … modification of the four classic international trade theorems, so econometricians who ignore offshoring might reject the Heckscher …
Persistent link: https://www.econbiz.de/10005504595
This paper takes a new look at the issue of overseas sourcing of services. In framework in which comparative advantage is endogenous to agglomeration economies and factor mobility, the fragmentation of production made possible by the new communication technologies and low transportation costs...
Persistent link: https://www.econbiz.de/10005136522
We study the determinants of the location of sub-contracted activity in a general equilibrium model of outsourcing and trade. We model outsourcing as an activity that requires search for a partner and relationship-specific investments that are governed by incomplete contracts. The extent of...
Persistent link: https://www.econbiz.de/10005666820
We study the determinants of the extent of outsourcing and of direct foreign investment in an industry in which producers need specialized components. Potential suppliers must make a relationship-specific investment in order to serve each prospective customer. Such investments are governed by...
Persistent link: https://www.econbiz.de/10005067585
We develop a model where trade liberalization leads to skill-biased technological change, which in turn raises the relative return to skilled labour. As firms get access to a larger market, they have incentives to choose a more skill-intensive technology because a lowering of variable costs...
Persistent link: https://www.econbiz.de/10005791636
Public opinion in Europe seems worried about the effect of lower-wage country competition. In both newspaper articles and in policy debates, the term ‘social dumping’ is becoming more and more popular. In many countries, trade unions worried by the effect of what they call ‘unfair...
Persistent link: https://www.econbiz.de/10005114508
In this paper, we adopt the vertical differentiation duopoly framework to give a full description of firms’ relocation decisions, when the removal either of trade barriers or of restrictions on capital outflows/inflows (‘globalization’) allows them to serve the domestic market through...
Persistent link: https://www.econbiz.de/10005661863
What is the impact of Chinese import competition on Nordic producer prices? In a panel covering 23 (2 digit) NACE manufacturing sectors from 1995 to 2008, instrumental variable estimations predict that when Chinese imports capture a 1% increase in market share, Nordic producer prices decrease by...
Persistent link: https://www.econbiz.de/10009275961
A large share of world trade, especially among the OECD countries, is two-way trade within industries, so-called intra-industry trade (IIT). Despite this, few attempts have been made to examine why countries export some products within industries, whereas they import others. We examine this...
Persistent link: https://www.econbiz.de/10005791255
We depart from the trade and wages literature and its emphasis on North-South trade, examining North-North trade and linkages between trade-based integration and relative wages in an Etiher-type division of labor model. Using this model we identify a formal relationship between international...
Persistent link: https://www.econbiz.de/10005791536