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Developing a three-sector and four-factor general equilibrium model, this paper offers an explanation of wage inequality in a vertically fragmented production structure typical of off-shore outsourcing to developing countries like China or India. The model characterizes a typical developing...
Persistent link: https://www.econbiz.de/10011111717
fragmentation. Whereas the growth in North-South trade has been labeled "horizontal globalisation", fragmentation stands for the … "vertical globalisation". First fragmentation is introduced into a Ricardian model with one factor of production in a small … functions where we introduce one or two components. As a result, it seems to be clear that fragmentation is changing …
Persistent link: https://www.econbiz.de/10008462107
We survey an emerging literature at the intersection of organizational economics and international trade. We argue that a proper modelling of the organizational aspects of production provides valuable insights on the aggregate workings of the world economy. In reviewing the literature, we...
Persistent link: https://www.econbiz.de/10005791747
This paper argues that indices of (business) service and material offshoring built on sectoral input-output data may actually measure something different than what we think they should. Applying shift-share analysis we decompose the variation over time of a commonly used class of such indices...
Persistent link: https://www.econbiz.de/10010292659
The impact of international trade on firm productivity is tested by accounting for firms' import as well as export status for a large panel of Irish manufacturing firms. Two-way traders and exporters-only are found to be the most productive firms, with a significant gap between them and...
Persistent link: https://www.econbiz.de/10010292837
Working with a panel dataset of of OECD countries over the decade 1994-2004, we examine linkages between cross-border trade and FDI in the service sectors. We first develop a consistent analytical framework for the application of the gravity model jointly to services trade and commercial...
Persistent link: https://www.econbiz.de/10010294854
We develop a new analytical framework for both cross-border services trade and services trade through foreign affiliates, based on heterogeneous firms operating under oligopoly. This leads to direct predictions about choice of services delivery (mode of delivery) at the firm level, and about the...
Persistent link: https://www.econbiz.de/10010294882
This paper tests some of the predictions of recent advances in trade theory that have focused on different trade patterns of firms within the same sector. Helpman, Melitz and Yeaple (2005) develop a model in which innate productivity differences between firms determine the degree of...
Persistent link: https://www.econbiz.de/10010295792
This paper analyses the relationship between firm productivity and export behavior in German manufacturing firms. We examine whether productivity increases the probability of exporting, and assert that there is a causal relationship from high productivity to entering foreign markets, as...
Persistent link: https://www.econbiz.de/10010297328
This paper tests some of the predictions of recent advances in trade theory that have focused on different trade patterns of firms within the same sector. Helpman, Melitz and Yeaple (2005) develop a model in which innate productivity differences between firms determine the degree of...
Persistent link: https://www.econbiz.de/10010297485