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We show that in a fully integrated economy, in which there is free mobility of goods and factors, each member’s share of total output will equal its shares of total stocks of productive factors (i.e., physical and human capital). We label this result the equal-share relationship. This...
Persistent link: https://www.econbiz.de/10010325430
We first demonstrate that, within a fully integrated economy (FIE) in which there is free mobility of goods and factors, each FIE member's share of total FIE output will equal its shares of the total FIE stock of each productive factor. This equal-share property implies that, if economic...
Persistent link: https://www.econbiz.de/10010325479
A major question in the globalization debate is whether outsourcing and offshoring activities are beneficial to the … suggests that the effect of offshoring manufacturing and services on total factor productivity (TFP) is positive and larger …
Persistent link: https://www.econbiz.de/10010325596
-house offshoring to China is a major determinant of Dutch import growth from China. Dutch firms tend to offshore production in …
Persistent link: https://www.econbiz.de/10010326028
There is evidence that better performing firms tend to enter international markets. Internationally active firms are larger, more productive, and pay higher wages than other firms in the same industry. Positive performance effects of engaging in international activity are found especially in...
Persistent link: https://www.econbiz.de/10011404871
The impact of offshoring on domestic jobs is more complicated than it first appears. In the standard narrative …, offshoring production is thought to harm domestic workers by providing cheap alternative sources of labor. However, while … offshoring may directly displace domestic workers, the resulting foreign market access and lower production costs allow domestic …
Persistent link: https://www.econbiz.de/10011405007
There is evidence that better performing firms tend to enter international markets. Internationally active firms are larger, more productive, and pay higher wages than other firms in the same industry. Positive performance effects of engaging in international activity are found especially in...
Persistent link: https://www.econbiz.de/10012269597
Is working more than monetary income? This paper attempts to give an answer to this question on the basis of the German Socio-economic Panel data set. By comparing the satisfaction with life between workers and non-workers with the same household income, the monetary value of participating in...
Persistent link: https://www.econbiz.de/10010324826
Liberalization of foreign trade and investment raises the domestic ratio of skilled to unskilled wages (skill premium) if the country has a sufficiently well-educated workforce, but lowers it otherwise. Wide wage inequality is undesirable on equity grounds, especially in poor countries where the...
Persistent link: https://www.econbiz.de/10011405029
to workers’ incomes and employment, while firms that import intermediate production stages (“offshoring”) display bigger … employment responses to small changes in workers’ wages, and are more likely to shut down home factories. But offshoring also … helps firms weather economic shocks. Offshoring firms are more likely to survive and provide greater employment stability to …
Persistent link: https://www.econbiz.de/10011662682