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We use unique plant-level data to study the link between the local availability of services and the decision of manufacturing firms to source materials from abroad. To guide our empirical analysis we develop a monopolistic-competition model of the materials sourcing decisions of heterogeneous...
Persistent link: https://www.econbiz.de/10013148078
Important labour market consequences of globalization may arise via product market integration which affects the room …
Persistent link: https://www.econbiz.de/10013317238
We propose the so-called domestic "embodied unit labor costs" (EULC) at the country-sector level as a new cost-related basis for measures of international competitiveness. EULC take into account that a sector's labor costs constitute only a small share of its total cost which to a large extent...
Persistent link: https://www.econbiz.de/10012919512
We develop a theory of a firm in an environment with incomplete contracts. The firm's headquarter decides on the …
Persistent link: https://www.econbiz.de/10013136032
How does factor accumulation affect the pattern of international specialization and returns to capital? We provide a new integrated treatment to this question using a panel of 44 developing and developed countries over the period 1976-2000. We confirm the Heckscher-Ohlin prediction that, with...
Persistent link: https://www.econbiz.de/10013148352
higher steady-state capital-labor ratio and manufacturing output, and unchanged NR and commodity output; iv) import and …
Persistent link: https://www.econbiz.de/10013143683
manufacturing industries to show that domestic and foreign outsourcing affect wages as predicted by the theory …This paper studies the impact of outsourcing on individual wages. In contrast to the standard approach in the … literature, we focus on domestic outsourcing as well as foreign outsourcing. By using a simple theoretical model, we argue that …
Persistent link: https://www.econbiz.de/10013318053
This study models producer protection legislation that would grant growers the right to claim damages (PPLD) if their contracts are prematurely terminated. In the absence of contracting frictions that prevent contractors from redesigning contracts to accommodate exogenous policy changes, PPLD...
Persistent link: https://www.econbiz.de/10013156403
Has rising import competition contributed to the polarization of U.S. politics? Analyzing multiple measures of … to the divisive 2016 U.S. presidential election. Exploiting the exogenous component of rising import competition by China …
Persistent link: https://www.econbiz.de/10013314978
We develop a general equilibrium model of international trade with heterogeneous firms, where countries can invest into basic research to improve their technological potential. These research investments tighten firm selection and raise the average productivity of firms in the market, thereby...
Persistent link: https://www.econbiz.de/10013131927