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Spiders and snakes: Offshoring and agglomeration in the global economy

Baldwin, Richard; Venables, Anthony J. - In: Journal of International Economics 90 (2013) 2, pp. 245-254

Global production sharing is determined by international cost differences and frictions related to the costs of unbundling stages spatially. The interaction between these forces depends on engineering details of the production process with two extremes being ‘snakes’ and ‘spiders’....

Persistent link: https://www.econbiz.de/10010679147

Volatility due to offshoring: Theory and evidence

Bergin, Paul R.; Feenstra, Robert C.; Hanson, Gordon H. - In: Journal of International Economics 85 (2011) 2, pp. 163-173

Existing models of offshoring are not equipped to explain how global production sharing affects the volatility of … economic activity. This paper develops a trade model that can account for why offshoring industries in low wage countries such … States. We argue that a key to explaining this outcome is that the extensive margin of offshoring responds endogenously to …

Persistent link: https://www.econbiz.de/10010574406

Capital Flows and the International Credit Channel

Baskaya, Yusuf Soner; Di Giovanni, Julian; … - In: Journal of International Economics 108, Supplement 1 (2017), pp. S15-S22

We examine the role of the international credit channel in Turkey over 2005–2013. We show that larger, more capitalized banks with higher non-core liabilities increase credit supply when capital inflows are higher. This result is stronger for domestic banks relative to foreign banks and...

Persistent link: https://www.econbiz.de/10012210868

Learning to export from neighbors

Fernandes, Ana P.; Tang, Heiwai - In: Journal of International Economics 94 (2014) 1, pp. 67-84

This paper studies how learning from neighboring firms affects new exporters' performance. We develop a statistical decision model in which a firm updates its prior belief about demand in a foreign market based on several factors, including the number of neighbors currently selling there, the...

Persistent link: https://www.econbiz.de/10010931444

Exporting under trade policy uncertainty: Theory and evidence

Handley, Kyle - In: Journal of International Economics 94 (2014) 1, pp. 50-66

I provide novel evidence for the impact of trade policy uncertainty on exporters. In a dynamic, heterogeneous firms model, trade policy uncertainty will delay the entry of exporters into new markets and make them less responsive to applied tariff reductions. Policy instruments that reduce or...

Persistent link: https://www.econbiz.de/10010931448

Firm-level comparative advantage

Crozet, Matthieu; Trionfetti, Federico - In: Journal of International Economics 91 (2013) 2, pp. 321-328

We study the consequences of heterogeneity in factor intensity on firm performance. We present a standard Heckscher–Ohlin model augmented with factor intensity differences across firms within a country–industry pair. We show that for any two firms, each of whose capital intensity is, for...

Persistent link: https://www.econbiz.de/10010730207

Monopolistic competition: CES redux?

Bertoletti, Paolo; Epifani, Paolo - In: Journal of International Economics 93 (2014) 2, pp. 227-238

We study the competitive and reallocation effects of trade opening in monopolistic competition. To this purpose, we generalize the Melitz (2003) setup with heterogeneous firms and fixed and variable trade costs beyond the CES to the case of additively separable utility functions. We find that...

Persistent link: https://www.econbiz.de/10010785324

The impacts of trade liberalization on informal labor markets: A theoretical and empirical evaluation of the Brazilian case

Paz, Lourenço S. - In: Journal of International Economics 92 (2014) 2, pp. 330-348

Following trade liberalization, several developing countries experienced a sharp increase in the share of informal manufacturing employment. In this paper, I examine the impacts of trade liberalization on the labor markets of a small open economy, in an environment in which tariffs affect firms'...

Persistent link: https://www.econbiz.de/10010744262

International trade, risk taking and welfare

Vannoorenberghe, G. - In: Journal of International Economics 92 (2014) 2, pp. 363-374

This paper shows that the gains from opening up to international trade are smaller when firms do not fully internalize downward risk. I develop a general equilibrium model with two key assumptions. First, when faced with adverse productivity shocks, employers can lay off workers without fully...

Persistent link: https://www.econbiz.de/10010744264

Rain, agriculture, and tariffs

Bastos, Paulo; Straume, Odd Rune; Urrego, Jaime A. - In: Journal of International Economics 90 (2013) 2, pp. 364-377

We examine whether and how rainfall shocks affect tariff setting in the agricultural sector. In a model of strategic trade policy, we show that the impact of a negative rainfall shock on optimal import tariffs is generally ambiguous, depending on the weight placed by the domestic policy maker on...

Persistent link: https://www.econbiz.de/10010679140