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Starting with Krugman (1980), much literature has analyzed how trade liberalization affects the economy based on the notion that trade is motivated by consumer's love of variety. In this paper, I augment these preferences by the determinants of demand for heterogeneous products. The model...
Persistent link: https://www.econbiz.de/10011430069
What is the impact of import competition from low-wage countries (LWCs) on inflationary pressure in Europe? This paper examines whether labor-intensive exports from emerging Europe, Asia, and other global regions have a uniform impact on producer prices in Germany, France, Italy, Sweden, and the...
Persistent link: https://www.econbiz.de/10011430088
This paper starts by showing that in the European car industry, there exist cross-country taste differences along the product attribute dimension that significantly drive net trade patterns and reduce the volume of trade. Further it is shown that, after the creation of the European common...
Persistent link: https://www.econbiz.de/10011430098
Economic globalization causes an increasing international fragmentation (disintegration) of value-added-chains, whereby firms outsource components of production to foreign markets. There is a high level of concern about unwelcome distributional effects. This paper provides a theoretical...
Persistent link: https://www.econbiz.de/10010294506
International fragmentation, or outsourcing, is often referred to as a distinctly novel feature in today's global … outsourcing targets for western European firms. Against this background this paper provides a policy-oriented discussion of cross … European point of view. Specifically, the paper idetifies conditions under which outsourcing is beneficial for a western …
Persistent link: https://www.econbiz.de/10010294567
fragmentation may cause a domestic welfare loss, because outsourcing takes place in discrete steps where it affords firms quasi … process of fragmentation caused by less costly outsourcing is beneficial for the domestic economy. …
Persistent link: https://www.econbiz.de/10010294583
outsourcing activities, thereby increasing the wage dispersion and, if labour markets are unionised, also the employment of high … associated with the fall of the Iron Curtain, indeed stimulate outsourcing to Eastern Europe and the former Soviet Union, and … second, that outsourcing to these countries significantly shifts relative employment in favour of high- skilled labour. …
Persistent link: https://www.econbiz.de/10010294596
outsourcing, or international fragmentation. Economists have investigated this phenomenon with a focus on welfare and factor price … welfare efect of outsourcing. Moreover, the paper highlights a crucial distinction between outsourcing that takes place in an … firms must rely on arms-length trasactions. The results are as follows. a) With foreign direct investment, outsourcing which …
Persistent link: https://www.econbiz.de/10010294605
. The paper identifies conditions under which outsourcing to a low-wage country is a friend or an enemy to domestic labour …
Persistent link: https://www.econbiz.de/10010294622
conditions, thereby reducing their opportunities further. One mechanism driving this is the process of (domestic) outsourcing … data to study how the labour market position of lower qualified workers is changing over time and how outsourcing and … between-firm segregation is contributing to this gap. I find that (1) domestic outsourcing is increasing over time and leading …
Persistent link: https://www.econbiz.de/10014566777