gains from trade, or a (negative) terms of trade effect linked with the vanishing effect of distance on wages. This paper … offshoring in the short run and in the long run (when technology levels are endogenous). The short-run analysis shows that when … research efforts in response to increased offshoring. In particular, the rich country always gains from increased fragmentation …

linkages in open economies. Labor-market imperfections arise by virtue of country-specific real minimum wages. Two principal … experiments are considered. First, we show that trade liberalization under minimum wages differs significantly from trade … workers at home and abroad. In an extension to our baseline model, we illustrate that offshoring production from the high …

This paper develops a simple theory of capital controls as dynamic terms-of-trade manipulation. We study an infinite … international capital flows converge to zero. Although our theory emphasizes interest rate manipulation, the country's net financial …

trade hurts rich-country workers, while reducing the volatility of their wages; by contrast, offshoring benefits them, while …We study the effect of globalization on the volatility of wages and worker welfare in a model in which risk is … integration of commodity markets (i.e., free trade) and international integration of factor markets (i.e., offshoring). In a two …

We construct a model of offshoring with externalities and firm heterogeneity. Due to the presence of externalities …, temporary shocks like the Y2K problem can have permanent effects, i.e., they can permanently raise the extent of offshoring in … externalities can help explain the dynamic process of offshoring, where the most productive firms offshore first and the others …