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. -- multinational firms ; outsourcing ; intra-firm trade ; offshoring ; vertical FDI …
Persistent link: https://www.econbiz.de/10009300131
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
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 various channels through which a reduction in the cost of offshoring can improve wages in a developed country are … by now well understood. But does a similar reduction in the offshoring cost also benefit workers in the world's factories … in developing countries? Using a parsimonious two-country model of offshoring we find very nuanced results. These include …
Persistent link: https://www.econbiz.de/10011480815
multinationals, are less likely to rely on imported or internally provided services. -- International trade ; services ; off-shoring …
Persistent link: https://www.econbiz.de/10003937886
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This paper concerns public input provision as an instrument for redistribution under international outsourcing by using … the provision of public input goods in response to international outsourcing, and (ii) whether international outsourcing … justifies policy cooperation. If the public input good is substitutable for (complementary with) outsourcing in terms of the …
Persistent link: https://www.econbiz.de/10003932133
We construct a model of offshoring with externalities and firm heterogeneity. Due to the presence of externalities …, temporary shocks like the Y2K problem can have permanent effects, i.e., they can permanently raise the extent of offshoring in … an industry. Also, the initial advantage of a country as a potential host for outsourcing activities can create a lock in …
Persistent link: https://www.econbiz.de/10003596092
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