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We know that euro-area member countries have absorbed asymmetric shocks in ways that are inconsistent with a common nominal anchor. Based on a reformulation of the gravity model that allows for such bilateral misalignment, we disentangle the conventional trade cost channel and trade effects...
Persistent link: https://www.econbiz.de/10003961504
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
of world trade matters for wage inequality. Therefore, trade integration, even among identical countries, is likely to … be reconciled with the fast growth of world trade and that the intersectoral mobility of capital exacerbates the effect … skill bias of world trade …
Persistent link: https://www.econbiz.de/10014060842
This paper explores the role of country asymmetries for trade and industrial policies with heterogeneous firms. Our analysis delivers a number of novel results. First, trade policies, infrastructure policies and industrial policies which improve the business conditions in one country have...
Persistent link: https://www.econbiz.de/10008822904
This paper explores the role of country asymmetries for trade and industrial policies with heterogeneous firms. Our analysis delivers a number of novel results. First, trade policies, infrastructure policies and industrial policies which improve the business conditions in one country have...
Persistent link: https://www.econbiz.de/10009314284
domestic products (GDPs) account for 36 percent of world GDP and whose mutual trade accounts for approximately 24 percent of … world trade. As for most proposed free trade agreements (FTAs), trade economists have provided ex ante computable general …
Persistent link: https://www.econbiz.de/10011764996
by now well understood. But does a similar reduction in the offshoring cost also benefit workers in the world's factories … increase or decrease in the developing world as a result of a reduction in offshoring costs. Since global welfare always rises …The various channels through which a reduction in the cost of offshoring can improve wages in a developed country are …
Persistent link: https://www.econbiz.de/10011480815
Does a reduction in offshoring cost benefit workers in the world's factories in developing countries? Using a … parsimonious two-country model of offshoring we find very nuanced results. These include cases where wages monotonically improve …, worsen, as well as where wages exhibit an inverted U-shaped relationship with the offshoring cost. We identify qualitative …
Persistent link: https://www.econbiz.de/10012903282
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
Persistent link: https://www.econbiz.de/10003805841