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reshoring or offshoring. When the demand elasticity rises with price, two policy instruments generally are needed to achieve …
Persistent link: https://www.econbiz.de/10012660008
be performed at home or abroad, but offshoring entails costs that vary by task. In equilibrium, the tasks with the … highest offshoring costs may not be traded. Among the remainder, those with the relatively higher offshoring costs are …
Persistent link: https://www.econbiz.de/10012464094
tradable tasks and use it to study how falling costs of offshoring affect factor prices in the source country. We identify a …
Persistent link: https://www.econbiz.de/10012465939
Can a country gain international competitiveness by the design of optimal monetary stabilization rules? This paper reconsiders this question by specifying an open-economy monetary model encompassing a 'production relocation externality,' developed in trade theory to analyze the benefits from...
Persistent link: https://www.econbiz.de/10012459306
We develop an equilibrium model of industrial structure in which the organization of firms is endogenous. Differentiated consumer products can be produced either by vertically integrated firms or by pairs of specialized companies. Production of each variety of consumer good requires a unique,...
Persistent link: https://www.econbiz.de/10012471481
While outsourcing of production from the U.S. to Mexico has been hailed in Mexico as a valuable engine of growth … literature to study the second moment properties of outsourcing. We begin by documenting a new stylized fact: the maquiladora … outsourcing industries in Mexico experience fluctuations in value added that are roughly twice as volatile as the corresponding …
Persistent link: https://www.econbiz.de/10012465509
relevant prevalence of outsourcing and foreign direct investment …
Persistent link: https://www.econbiz.de/10012469300
We study the determinants of the extent of outsourcing and of direct foreign investment in an industry in which …
Persistent link: https://www.econbiz.de/10012469406
We study the determinants of the location of sub-contracted activity in a general equilibrium model of outsourcing and … trade. We model outsourcing as an activity that requires search for a partner and relationship-specific investments that are … governed by incomplete contracts. The extent of international outsourcing depends inter alia on the thickness of the domestic …
Persistent link: https://www.econbiz.de/10012469987