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This chapter reviews the state of the international trade literature on multinational firms. This literature addresses three main questions. First, why do some firms operate in more than one country while others do not? Second, what determines in which countries production facilities are...
Persistent link: https://www.econbiz.de/10014025384
Chapter I of this study presents a brief review of the appearance and expansion of the Asian IPN phenomenon, followed by a literature survey that explores key drivers of this phenomenon from theoretical perspectives. Theories point to important conditions that countries must meet in order to be...
Persistent link: https://www.econbiz.de/10009651147
The impact of offshoring on average labor productivity is investigated on a panel of 17 manufacturing sectors between … 1989-2006. As proxies for offshoring, we use imports and import penetration, defined as the ratio of imports to output. We …
Persistent link: https://www.econbiz.de/10009320378
Global production sharing is determined by international cost differences and frictions related to the costs of unbundling stages spatially. The interaction between these forces depends on engineering details of the production process with two extremes being ‘snakes’ and ‘spiders’....
Persistent link: https://www.econbiz.de/10010679147
Existing models of offshoring are not equipped to explain how global production sharing affects the volatility of … economic activity. This paper develops a trade model that can account for why offshoring industries in low wage countries such … States. We argue that a key to explaining this outcome is that the extensive margin of offshoring responds endogenously to …
Persistent link: https://www.econbiz.de/10010574406
I introduce an alternative parameter-based definition of component- and headquarter-intensive sectors into the seminal model of global sourcing by Antràs and Helpman (2004, JPE). This approach overcomes problems of the original sector definition like counter intuitive classifications or...
Persistent link: https://www.econbiz.de/10008853893
The paper investigates the relationship between offshoring, wages, and the occupational task profile using rich … individual-level panel data. Our main results suggest that, when only considering within-industry changes in offshoring, we … identify a moderate wage reduction due to offshoring for low-skilled workers, though wage effects in relation to the task …
Persistent link: https://www.econbiz.de/10011048638
When materials offshoring is measured by estimating imported intermediate inputs, a common assumption used is that an … the 3-digit I–O industry level, there is a correlation of 0.68 between the offshoring shares made with and without the …
Persistent link: https://www.econbiz.de/10011041805