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According to Research Associate Thomas I. Palley, global outsourcing represents a new economic challenge that calls for … a new set of institutions. In this brief, he expands upon the problems of offshore outsourcing as outlined in Public … Policy Brief no. 86 and focuses on the microeconomic foundations. He argues that outsourcing is a central element of …
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"Countries that are more engaged in production sharing exhibit higher bilateral manufacturing output correlations. We use data on trade flows between US multinationals and their affiliates as well as trade between the United States and Mexican maquiladoras to measure production-sharing trade and...
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