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Y2K and Offshoring : The Role of External Economies and Firm Heterogeneity

Mitra, Devashish - 2005

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

Overseas Assembly and Country Sourcing Choices

Swenson, Deborah L. - 2004

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

Internalizing Global Value Chains : A Firm-Level Analysis

Alfaro, Laura - 2015

In recent decades, advances in information and communication technology and falling trade barriers have led firms to retain within their boundaries and in their domestic economies only a subset of their production stages. A key decision facing firms worldwide is the extent of control to exert...

Persistent link: https://www.econbiz.de/10012457087

Global Sourcing and Multinational Activity : A Unified Approach

Antràs, Pol; Fadeev, Evgenii; Fort, Teresa C.; … - National Bureau of Economic Research - 2022

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

Exploiting Complementarity in Applied General-Equilibrium Models : Heterogeneous Firms, Multinationals, Capacity Constraints, Endogenous Zeros

Markusen, James R. - National Bureau of Economic Research - 2024

Applied general-equilibrium (AGE) models have often made compromises to circumvent difficult modeling problems. One of these is avoiding endogenous zeros, ruling out important questions. Traditional perfect competition models: when do technologies or trade links switch from active to inactive or...

Persistent link: https://www.econbiz.de/10014635684

FDI Inflows and Domestic Firms : Adjustments to New Export Opportunities

McCaig, Brian; Pavcnik, Nina; Wong, Woan Foong - National Bureau of Economic Research - 2022

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

Telemigration and Development : On the Offshorability of Teleworkable Jobs

Baldwin, Richard E.; Dingel, Jonathan I. - National Bureau of Economic Research - 2021

The Covid-19 pandemic has introduced huge numbers of employers and employees to remote work. How many of these newly remote jobs will go overseas? We offer a rough quantification based on two observations: 1) offshore work is trade in services, and 2) the number of telemigrants is the volume of...

Persistent link: https://www.econbiz.de/10012660065

International Trade, Offshoring and Heterogeneous Firms

Baldwin, Richard - 2011

possibility that freer trade also alters the firm-size distribution via international firm migration (offshoring); firms must, by …

Persistent link: https://www.econbiz.de/10012461997

Spiders and snakes : offshoring and agglomeration in the global economy

Baldwin, Richard - 2010

Global production sharing is determined by international cost differences and frictions related to the costs of unbundling stages spatially. The interaction between these forces depends on engineering details of the production process with two extremes being 'snakes' and 'spiders'. Snakes are...

Persistent link: https://www.econbiz.de/10012462046

Task Trade between Similar Countries

Grossman, Gene M. - 2008

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