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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
Using microdata, we analyse the determinants of firm relocation and outsourcing decisions and their effects on firms …
Persistent link: https://www.econbiz.de/10003635366
Barriers to outsourcing that are being currently implemented in the US effectively tax its companies who "export" jobs … through outsourcing. The objective is to raise domestic employment. Given that many of the important international markets … oligopolistic context. We find that while an outsourcing tax favors domestic workers by causing firms to switch to a greater use of …
Persistent link: https://www.econbiz.de/10009124754
). It turns out that, compared to non-offshoring firms, firms that relocated activities were larger and more productive, and … relocate, and this points to self-selection of "better" firms into offshoring. This finding is in line with results from recent … others were not. Broadly in line with hypotheses derived from the literature there is no evidence that offshoring has a …
Persistent link: https://www.econbiz.de/10003923926
We examine the determinants of the decision to relocate activities abroad for firms located in OECD countries. We argue that particular firm-specific features play a crucial role for the link between employment protection and relocation. Stricter employment protection laws over time in the...
Persistent link: https://www.econbiz.de/10011853748