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The Bazaar Effect, Unbundling of Comparative Advantage, and Migration
Kohler, Wilhelm - 2007
Germany exhibits a strong reduction in domestic manufacturing production depth (bazaar effect). I argue that this reflects an unbundling of comparative advantage. Using a model where Ricardian plus Heckscher-Ohlin-type comparative advantage relates to fragments of production, I compare a trading...
Persistent link: https://www.econbiz.de/10012777491
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Offshoring and Skill-Upgrading in French Manufacturing : A Heckscher-Ohlin Melitz View
Carluccio, Juan - 2015
We present a factor-proportions trade model in which heterogeneous firms can offshore intermediate inputs subject to fixed offshoring costs. In the skill-abundant country, high-productivity firms offshore a larger range of labor-intensive inputs to the labor-abundant countries than...
Persistent link: https://www.econbiz.de/10013012534
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The Dynamics of Comparative Advantage
Hanson, Gordon H. - 2015
This paper characterizes the dynamic empirical properties of country export capabilities in order to inform modelling of the long-run behavior of comparative advantage. The starting point for our analysis is two strong empirical regularities in international trade that have previously been...
Persistent link: https://www.econbiz.de/10013009768
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International Outsourcing under Monopolistic Competition : Winners and Losers
Do, Viet Dung - 2007
We show that, even with flexible domestic wages, international outsourcing may worsen the welfare of the home country … and reduce the profits of all firms. If wages are rigid, outsourcing is welfare-improving if and only if the sum of the … subsidy may improve welfare. We also extend the model to a two-period framework. Delaying outsourcing can be gainful because …
Persistent link: https://www.econbiz.de/10012776626
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Private Labels and International Trade : Trading Variety for Volume
Blanchard, Emily J. - 2013
This paper explores the role of pooled-producer, e.g. private label, trade intermediation in shaping the range and diversity of exports. Direct sales maintain a firm's unique product characteristics (‘brand equity'), whereas trade through an intermediary can take two forms - either a...
Persistent link: https://www.econbiz.de/10013085757
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Price Discrimination in Input Markets : Quantity Discounts and Private Information
Herweg, Fabian; Müller, Daniel - 2021
We consider a monopolistic supplier’s optimal choice of wholesale tariffs when downstream firms are privately informed about their retail costs. Under discriminatory pricing, downstream firms that differ in their ex ante distribution of retail costs are offered different tariffs. Under uniform...
Persistent link: https://www.econbiz.de/10013315795
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Intermediate Goods Trade, Technology Choice and Productivity
Peng, Shin Kun - 2016
We develop a dynamic model of intermediate goods trade in which the pattern and the extent of intermediate goods trade are endogenous. We consider a small open economy whose final good production employs an endogenous array of intermediate goods, from low technology (high cost) to high...
Persistent link: https://www.econbiz.de/10013001169
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Trade and Uncertainty
Novy, Dennis - 2014
We offer a new explanation as to why international trade is so volatile in response to economic shocks. Our approach combines the uncertainty shock idea of Bloom (2009) with a model of international trade, extending the idea to the open economy. Firms import intermediate inputs from home or...
Persistent link: https://www.econbiz.de/10013052023
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Optimal Education Policies and Comparative Advantage
Bougheas, Spiros - 2009
We consider the optimal education policies of a small economy whose government has a limited budget. Initially, the economy is closed and the government chooses its education policy to maximize welfare under autarky. Then the economy trades with the rest of the world. Lastly, the government...
Persistent link: https://www.econbiz.de/10013160221
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International Trade and Transnational Insecurity : How Comparative Advantage and Power are Jointly Determined
Garfinkel, Michelle R.; Skaperdas, Stergios; … - 2021
We augment the canonical neoclassical model of trade to allow for interstate disputes over land, oil, water, or other resources. The costs of such disputes in terms of arming depend on the trade regime in place. Under either autarky or free trade, the larger country (in terms of factor...
Persistent link: https://www.econbiz.de/10013316359