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integration)? Which firms choose to expand their sourcing activities across the national border (offshoring)? This letter provides … vertical integration and of offshoring tend to have been more productive ex ante than firms choosing not to do so. This finding …
Persistent link: https://www.econbiz.de/10010199514
by the cost of task trade. Comparing orders of magnitude we conclude that offshoring between similar countries only has a … small positive effect on the managerial wage premium, compared to offshoring between countries with a different relative … endowment. -- Offshoring ; Economies of Scale ; Income Distribution ; International Inequality …
Persistent link: https://www.econbiz.de/10009229062
The policy debate views offshoring as job destruction. Theoretical models of offshoring mostly assume full employment …-monotonic adjustment: Early stages of offshoring always lead to higher unemployment, while later stages may entail net job creation. We … highlight this potential through numerical simulations. -- Offshoring ; Trade in Tasks ; Unemployment ; Non-monotonicity …
Persistent link: https://www.econbiz.de/10009229069
In New Trade Theory models, the larger region hosts an overproportionate share of producers. This Home Market Effect (HME) exacerbates regional income discrepancies caused by trade frictions or technology differences. With homogeneous firms, it requires inter-industry reallocations to emerge. We...
Persistent link: https://www.econbiz.de/10009530352
Major technological advances have recently spurred a new wave of offshoring in services, which used to be non … question, suggesting that efficiency gains from offshoring may counteract direct job losses, which leaves the predicted net … effect ambiguous. This paper investigates the employment effects of service offshoring in a newly combined and exceptionally …
Persistent link: https://www.econbiz.de/10011736965
We offer a theoretical explanation and empirical evidence for a positive link between increased offshoring and … mainly focuses on the retraining of workers after a direct job displacement through offshoring. To establish a link between … offshoring and on-the-job training, we introduce an individual skill upgrading margin into the small-open-economy version of the …
Persistent link: https://www.econbiz.de/10010201168
) can offshore routine tasks to a low-wage host country. The most productive firms self-select into offshoring, and the … impact on welfare in the source country can be positive or negative, depending on the share of firms engaged in offshoring … among entrepreneurs is higher with offshoring than in autarky. All results hold in a model extension with firm-level rent …
Persistent link: https://www.econbiz.de/10009687832
Relational contracts - informal agreements sustained by the value of future relationships – are integral parts of global production processes. This paper develops a repeated-game model of global sourcing in which final goods producers decide whether to engage with their suppliers in relational...
Persistent link: https://www.econbiz.de/10011290650