Holmes, Thomas J.; Snider, Julia Thornton - Federal Reserve Bank of Minneapolis - 2009
We develop a theory of outsourcing in which there is market power in one factor market (labor) and no market power in a … second factor market (capital). There are two intermediate goods: one labor-intensive and the other capital-intensive. We … trade frictions
decline,thepaperiscloseinspirittothetradeliteratureonoffshoring (e.g., Grossman and
Helpman (2005), Antràs …