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, (ii) increase with the inverse of the sum of the import demand and export supply elasticities, and (iii) decrease with the … increase in import growth, the inverse of the sum of the import demand and export supply elasticity, and the standard deviation …
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This paper studies the second-moment properties of offshoring, the arrangement whereby firms carry out particular stages of production abroad. It documents a new empirical regularity: maquiladora industries in Mexico that are associated with US offshoring experience fluctuations in employment...
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