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Foreign Direct Investment and Relative Wages : Evidence from Mexico'S Maquiladoras
Feenstra, Robert C.; Hanson, Gordon H. - 2021
In this paper, we examine the increase in the relative wages of skilled workers in Mexico during the 1980s. We argue … that rising wage inequality in Mexico is linked to capital inflows from abroad. The effect of these capital inflows, which … production in Mexico towards relatively skill-intensive goods thereby increasing the relative demand for skilled labor. We study …
Persistent link: https://www.econbiz.de/10013221077
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The Effects of Offshore Assembly on Industry Location : Evidence from U.S. Border Cities
Hanson, Gordon H. - 2021
In this paper, I examine how the growth of offshore assembly in Mexico has affected manufacturing activity in U ….S.-manufactured components receive preferential tariff treatment upon reentry into the United States. Foreign assembly plants in Mexico, most of … Mexico increases the demand for manufacturing goods produced in U.S. border cities. Implications of the North American Free …
Persistent link: https://www.econbiz.de/10013210608
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International Trade, Offshoring and Heterogeneous Firms
Baldwin, Richard - 2011
Recent trade models determine the equilibrium distribution of firm-level efficiency endogenously and show that freer trade shifts the distribution towards higher average productivity due to entry and exit of firms. These models ignore the possibility that freer trade also alters the firm-size...
Persistent link: https://www.econbiz.de/10013131680
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Spiders and Snakes : Offshoring and Agglomeration in the Global Economy
Baldwin, Richard - 2011
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'. Snakes are...
Persistent link: https://www.econbiz.de/10013132069
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Immigration, Offshoring and American Jobs
Ottaviano, Gianmarco I.P. - 2010
How many "American jobs" have U.S.-born workers lost due to immigration and offshoring? Or, alternatively, is it possible that immigration and offshoring, by promoting cost-savings and enhanced efficiency in firms, have spurred the creation of jobs for U.S. natives? We consider a multi-sector...
Persistent link: https://www.econbiz.de/10013137307
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The Empirics of Firm Heterogeneity and International Trade
Bernard, Andrew B. - 2011
This paper reviews the empirical evidence on firm heterogeneity in international trade. A first wave of empirical findings from micro data on plants and firms proposed challenges for existing models of international trade and inspired the development of new theories emphasizing firm...
Persistent link: https://www.econbiz.de/10013118121
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The Wage Effects of Offshoring : Evidence from Danish Matched Worker-Firm Data
Hummels, David L. - 2011
We estimate how offshoring and exporting affect wages by skill type. Our data match the population of Danish workers to the universe of private-sector Danish firms, whose trade flows are broken down by product and origin and destination countries. Our data reveal new stylized facts about...
Persistent link: https://www.econbiz.de/10013119610
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Offshoring and Directed Technical Change
Acemoglu, Daron - 2012
To study the short-run and long-run implications on wage inequality, we introduce directed technical change into a Ricardian model of offshoring. A unique final good is produced by combining a skilled and an unskilled product, each produced from a continuum of intermediates (tasks). Some of...
Persistent link: https://www.econbiz.de/10013096853
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Selection and Market Reallocation : Productivity Gains from Multinational Production
Alfaro, Laura - 2012
Assessing the productivity gains from multinational production has been a vital topic of economic research. Positive aggregate productivity gains are often attributed to within-firm productivity improvement; however, an alternative, less emphasized explanation is between-firm selection and...
Persistent link: https://www.econbiz.de/10013104061
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Evaluating Estimates of Materials Offshoring from U.S. Manufacturing
Feenstra, Robert C. - 2012
When materials offshoring is measured by estimating imported intermediate inputs, a common assumption used is that an industry's imports of each input, relative to its total demand, is the same as the economy-wide imports relative to total demand: this is the so-called "import comparability" or...
Persistent link: https://www.econbiz.de/10013108915