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distinguish between domestic and foreign sourcing, as well as between outsourcing and vertical integration. A firm’s choice is …
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Germany exhibits a strong reduction in domestic manufacturing production depth (bazaar effect). I argue that this reflects an unbundling of comparative advantage. Using a model where Ricardian plus Heckscher-Ohlin-type comparative advantage relates to fragments of production, I compare a trading...
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is whether such outsourcing affects domestic income distribution. The paper provides a theoretical treatment of this …
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