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firms to leave the market, thereby affecting aggregate productivity. Since wage and productivity responses are endogenous …, our model is well suited to study the impacts of trade integration on aggregate productivity and factor prices. Using … Canada-U.S. interregional trade data, we first estimate a system of theory-based gravity equations under the general …
Persistent link: https://www.econbiz.de/10010268928
change in competition. Higher substitutability increases welfare, output and productivity because resources shift towards the …
Persistent link: https://www.econbiz.de/10010261777
Based on a model with imperfectly competitive labor and product markets the real consequences of labor market shocks for economies with either an earnings-related or flatrate unemployment compensation system are considered. A distinctive feature of the analysis is the comparison of both...
Persistent link: https://www.econbiz.de/10010262567
This paper uses a two country trade and geography model of monopolistic competition to study the effects of wage policies and social policies on the location of industry. It is first shown that a union wage push in one of two otherwise identical countries induces a relocation of firms which...
Persistent link: https://www.econbiz.de/10010262711
Entrepreneurs who decide to enter an industry are faced with different levels of effective entry costs in different countries. These costs are heavily influenced by economic policy. What is not well understood is how international trade affects the government incentive to impact on entry costs,...
Persistent link: https://www.econbiz.de/10010271259
consumers has inspired the development of a new brand of trade theory, the theory of heterogeneous firms and trade. The …
Persistent link: https://www.econbiz.de/10010286896
studies conducted so far focus alone on the productivity effects of offshoring at the firm level. Here I carry out the …. On the other hand, positive effects on the growth rate of productivity are found as a result of both types of offshoring …First moves towards a real understanding of offshoring date back to very recent times. In particular for Japan, the …
Persistent link: https://www.econbiz.de/10010278561
international sourcing of materials depends on a firm's productivity and the availability of local services. These predictions are …
Persistent link: https://www.econbiz.de/10010277455
unemployment decreases upon offshoring in the presence of perfect intersectoral labor mobility. If, as a result, labor moves to the … intersectoral labor mobility, unemployment in the offshoring sector can rise, with an unambiguous unemployment reduction in the non-offshoring …
Persistent link: https://www.econbiz.de/10010269045
In the neoclassical production functions model technical change (TC) is assumed to be exogenous and it is specified as a function of time. However, some exogenous external factors other than time can also affect the rate of TC. In this paper we model TC via a combination of time trend (purely...
Persistent link: https://www.econbiz.de/10010280731