Showing 1 - 10 of 34
improvements in the informal sector expand both offshoring and outsourcing, and the developed nation wage must rise. When the …We present a model of offshoring of tasks to a developing nation, which is characterized by a minimum wage formal … informal sector. An improvement in the productivity in performing offshored tasks in the developing country raises offshoring …
Persistent link: https://www.econbiz.de/10012242847
This paper unpacks the role of the domestic content of imports as a novel source of policy interdependence along the global supply chain. We show how a rise in local contents embodied in imports can skew national trade policy preferences, and pull upstream and downstream countries in asymmetric...
Persistent link: https://www.econbiz.de/10013471205
The division of labor between and within countries is driven by two fundamental forces, comparative advantage and increasing returns. We set up a simple Ricardian model with a Marshallian input sharing mechanism to study their interplay. The key insight that emerges is that the interaction...
Persistent link: https://www.econbiz.de/10011543995
domestic labor force at the sector-level. In order to better elucidate the offshoring employment relationship, this paper … production-side shock that changes firms' offshoring decision can influence the local economy and its labor market. …
Persistent link: https://www.econbiz.de/10011952657
This paper studies the relationship between immigration and offshoring by examining whether an influx of foreign … of immigrants into a municipality reduces firm-level offshoring at both the extensive and intensive margins. The fact … that immigration and offshoring are substitutes has important policy implications, since restrictions on one may encourage …
Persistent link: https://www.econbiz.de/10011847152
pollution haven hypothesis whereby offshoring is central to the mechanism - US manufacturers begin to source from abroad and …
Persistent link: https://www.econbiz.de/10013540780
The manufacturing industry in industrialised countries is often argued to servicify - use and sell more services - but knowledge is poor. We examine the phenomenon using detailed and com-prehensive micro level data at both the firm and enterprise group level for Sweden (1997-2006). We find that...
Persistent link: https://www.econbiz.de/10012654354
lower overall labour costs. On the back of this setup follows an analysis of the macroeconomic implications of offshoring in … the short and long run. Offshoring through vertical FDI is found to lead to a falling wage share and a simultaneously … structural change implied by offshoring leads to lower rates of capital accumulation and employment in the North relative to the …
Persistent link: https://www.econbiz.de/10013197975
Offshoring is an important aspect of firms' internationalization. However, offshoring comes at a cost, especially where … information or trust is lacking. Immigrant employees could reduce such offshoring costs through their knowledge of their former …-2007. Our results support the hypothesis that immigrant employees spur offshoring activities by firms through lower offshoring …
Persistent link: https://www.econbiz.de/10012654418
Multinational enterprises (MNE) have been highly instrumental in the processes leading to the increased fragmentation of production within global value chains. We examine the relationship between relative demands for skills, non-routine or non-offshorable tasks in Swedish MNE parents (onshore)...
Persistent link: https://www.econbiz.de/10012654437