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We show that, even with flexible domestic wages, international outsourcing may worsen the welfare of the home country and reduce the profits of all firms. If wages are rigid, outsourcing is welfare-improving if and only if the sum of the quot;trade creationquot; effect and the quot;exploitation...
Persistent link: https://www.econbiz.de/10012776626
This volume was prepared by Benedikt Heid while he was working at the ifo Institute and the University of Bayreuth. It was completed in December 2013 and accepted as a doctoral thesis by the Department of Economics at the Ludwig-Maximilians-Universität München. It includes six self-contained...
Persistent link: https://www.econbiz.de/10011742960
This volume was prepared by Benedikt Heid while he was working at the ifo Institute and the University of Bayreuth. It was completed in December 2013 and accepted as a doctoral thesis by the Department of Economics at the Ludwig-Maximilians-Universität München. It includes six self-contained...
Persistent link: https://www.econbiz.de/10013447126
We carry out an indirect inference test of two versions of a computable general equilibrium (CGE) model of world trade. One of these, the ‘classical’ model,is well-known as the Heckscher-Ohlin-Samuelson model of world trade, in which countries trade homogeneous products in world markets and...
Persistent link: https://www.econbiz.de/10012602338
Technological advance and improvements in communication technologies have facilitated the offshoring of jobs worldwide … countries that contain developing country labor content. We demonstrate that this pattern of offshoring can harbor a pro …
Persistent link: https://www.econbiz.de/10013211228
In this paper we explore the role that demand uncertainty plays for the offshoring decision, and the role that … offshoring plays for domestic volatility of employment. Offshoring is modeled as in Antràs & Helpman (2004), but we assume … firm's employment decision in its domestic and offshore production. In this environment, offshoring is driven by …
Persistent link: https://www.econbiz.de/10012986173
This paper is concerned about addressing a question that has become critical in international trade, during the past three decades: "What factors explain the worldwide increase in skill premiums following international trade integration and increasingly globalized economies"? I propose a new...
Persistent link: https://www.econbiz.de/10012972121
We derive a simple equation to calculate the global welfare impact of the simultaneous reduction of trade costs between multiple country-pairs. Interestingly, we find that we obtain the same equation for a broad class of trade models. Moreover, balanced trade is mostly not required for the...
Persistent link: https://www.econbiz.de/10014161857
In this paper we explore the role that demand uncertainty plays for the offshoring decision, and the role that … offshoring plays for domestic volatility of employment. Offshoring is modeled as in Antràs & Helpman (2004), but we assume … firm's employment decision in its domestic and offshore production. In this environment, offshoring is driven by …
Persistent link: https://www.econbiz.de/10011497799
This study develops a two-country model, Home and Foreign, with offshoring and environmental spillover. A final good …
Persistent link: https://www.econbiz.de/10013078090