Showing 1 - 10 of 159
We develop a theory of a firm in an incomplete contracts environment which decides on its complexity, organization, and global scale. Specifically, the firm decides i) how thinly it wants to slice its production process by choosing the mass of symmetric intermediate inputs that are...
Persistent link: https://www.econbiz.de/10013120903
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
The paper investigates the consequences of outsourcing of labor intensive activities to lowwage economies. This trend … markets are missing. The main results are: (i) outsourcing raises unemployment and labor income risk of unskilled workers; (ii …) it increases inequality among high- and low-income groups; and (iii) the gains from outsourcing can be made Pareto …
Persistent link: https://www.econbiz.de/10013316451
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/10005181377
Cross-country regressions suggest that urbanization and FDI are important drivers of growth. However, it is not clear that primacy eventually hurts growth performance. Since it is tough to interpret cross-country growth regressions, we provide detailed evidence on the determinants of outward FDI...
Persistent link: https://www.econbiz.de/10005765950
interact with fragmentation in determining government size. The empirical study of the role of fragmented governments for …
Persistent link: https://www.econbiz.de/10005094240
-skilled labor and perfect competition in high-skilled labor in the presence of outsourcing? A higher degree of tax progression by …
Persistent link: https://www.econbiz.de/10013136006
into foreign outsourcing. We show that multinational firms are able to shift profits abroad even if they fully comply with …
Persistent link: https://www.econbiz.de/10013098653
-skilled labor and perfect competition in high-skilled labor in the presence of outsourcing? A higher degree of tax progression by …
Persistent link: https://www.econbiz.de/10013154267
production to the other. In the country whose firms outsource production abroad, the government will respond to outsourcing by … the absence of outsourcing. The tax policy response by the government in the country that receives foreign production …
Persistent link: https://www.econbiz.de/10013156230