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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/10012466954
outsourcing decisions are affected by changes in country and competitor costs. A number of interesting regularities emerge. When a … developed countries. In many cases, the measured responses to cost changes appear to correspond with outsourcing theories that …
Persistent link: https://www.econbiz.de/10012467994
Multinational firms (MNEs) accounted for 42 percent of US manufacturing employment, 87 percent of US imports, and 84 of US exports in 2007. Despite their disproportionate share of global trade, MNEs' input sourcing and final-good production decisions are often studied separately. Using newly...
Persistent link: https://www.econbiz.de/10013388806
We investigate the long-term effects of export opportunities to a large destination market on multinational affiliates and domestic firms in a low-income host country. The US-Vietnam Bilateral Trade Agreement reduced US import tariffs on exports from Vietnam. Tariff reductions led to entry of...
Persistent link: https://www.econbiz.de/10013477221
We link industry-level data on trade and offshoring with individual-level worker data from the Current Population …
Persistent link: https://www.econbiz.de/10012463543
be performed at home or abroad, but offshoring entails costs that vary by task. In equilibrium, the tasks with the … highest offshoring costs may not be traded. Among the remainder, those with the relatively higher offshoring costs are …
Persistent link: https://www.econbiz.de/10012464094
This paper examines the relationship between the share of employment potentially affected by offshoring and economic … statistical association between the share of both "non-clerical" and clerical occupations potentially affected by offshoring and …
Persistent link: https://www.econbiz.de/10012465860
correspond to an increase in outsourcing by multinationals from the United States and other Northern countries, is to shift …
Persistent link: https://www.econbiz.de/10012473764
Estimating the causal effect of offshoring on domestic employment is difficult because of the inherent simultaneity of …. Underlying these results is substantial heterogeneity based on offshoring margin and firm organizational structure. For example …
Persistent link: https://www.econbiz.de/10012453767
This paper develops a framework to study the interplay between world trade and interest rates. The model incorporates an explicit notion of time and of production length, along the lines of the 'Austrian' tradition of Böhm-Bawerk (1889). Changes in the interest rate affect production lengths,...
Persistent link: https://www.econbiz.de/10013537738