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Maquiladoras and informality: A mixed blessing

Heid, Benedikt; Larch, Mario; Riaño, Alejandro - 2011

Mexico experienced a tremendous expansion of its export-processing maquila sector during the 1990s. At the same time, a large proportion of its labor force remains employed in the informal sector. Since one of the main objectives of the maquiladora program was to increase formal employment, we...

Persistent link: https://www.econbiz.de/10010280836

Uncertainty in Global Sourcing : Learning, Sequential Offshoring, and Selection Patterns

Larch, Mario; Navarro, Leandro - 2022

uncertainty by observing offshoring firms’ behaviour. The model characterises a sequential offshoring equilibrium path, led by the … Colombia, we test for the determinants and timing of offshoring decisions. We also derive spatial probit structural models to … identify the firms’ dynamic trade-off when they decide on the offshoring location. We find supportive evidence for the model …

Persistent link: https://www.econbiz.de/10014242796

Knowledge-capital meets new economic geography

Egger, Peter; Gruber, Stefan; Larch, Mario; … - 2005

We incorporate the now standard knowledge-capital model of multinational firms in a new economic geography setting. The theoretical predictions of our model suggest that unskilled labor mobility leads to less concentration of production than skilled labor mobility does. This is in line with...

Persistent link: https://www.econbiz.de/10010261159

Icebergs versus Tariffs: A Quantitative Perspective on the Gains from Trade

Felbermayr, Gabriel J.; Jung, Benjamin; Larch, Mario - 2013

Recent quantitative trade models treat import tariffs as pure cost shifters so that their effects are similar to iceberg trade costs. We introduce revenue-generating import tariffs, which act as demand shifters, into the framework of Arkolakis, Costinot and Rodriguez-Clare (2012), and generalize...

Persistent link: https://www.econbiz.de/10010292713

Unemployment in an interdependent world

Felbermayr, Gabriel J.; Larch, Mario; Lechthaler, Wolfgang - 2009

We introduce search and matching unemployment into a model of trade with differentiated goods and heterogeneous firms. Countries may differ with respect to size, geographical location, and labor market institutions. Contrary to the literature, our single-sector perspective pays special attention...

Persistent link: https://www.econbiz.de/10010266008

Comparative advantage and skill-specific unemployment

Larch, Mario; Lechthaler, Wolfgang - 2009

We introduce unemployment and endogenous selection of workers into different skill-classes in a trade model with two sectors and heterogeneous firms. This allows us to study the distributional consequences and the skill-specific unemployment effects of trade liberalization. We show that the...

Persistent link: https://www.econbiz.de/10010266011

Optimal tariffs, retaliation and the welfare loss from tariff wars in the Melitz model

Felbermayr, Gabriel; Jung, Benjamin; Larch, Mario - 2011

This paper characterizes analytically the optimal tariff of a large one-sector economy with monopolistic competition and firm heterogeneity in general equilibrium, thereby extending the small-country results of Demidova and Rodriguez-Clare (JIE, 2009) and the homogeneous firms framework of Gros...

Persistent link: https://www.econbiz.de/10010274758

Why 'buy American' is a bad idea but politicians still like it

Larch, Mario; Lechthaler, Wolfgang - 2010

When the world economy was recently hit by a severe recession, governments all over the world reacted by initiating stimulus packages. Some countries (among them, most notably, China and the US) tried to put special emphasis on their home industries by including 'Buy local' clauses into the...

Persistent link: https://www.econbiz.de/10010274792

Capacity constraining labor market frictions in a global economy

Holzner, Christian; Larch, Mario - 2011

Convex vacancy creation costs shape firms' responses to trade liberalization. They induce capacity constraints by increasing firms' cost of production, leading a profit maximizing firm not to fully meet the increased foreign demand. Hence, firms will only serve a few export markets. More...

Persistent link: https://www.econbiz.de/10010278888

Spatial exporters

Defever, Fabrice; Heid, Benedikt; Larch, Mario - 2011

In this paper, we provide evidence that expanding firms tend to serve new markets which are geographically close and culturally related to their prior export destinations. We quantify the impact of this spatial pattern using a Chinese firm-level data set. To ensure an exogenous set of potential...

Persistent link: https://www.econbiz.de/10010280629