On Offshoring and Trade Deficit

The paper constructs a general equilibrium model of North–South trade with nontraded goods, real exchange rate, and a continuum of components that North partly offshores to South. It is shown that a protectionary policy which restricts offshoring may have the unintended consequence of widening the trade deficit.

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Year of publication:	2014
Authors:	Beladi, Hamid ; Oladi, Reza
Published in:	Review of Development Economics. - Wiley Blackwell. - Vol. 18.2014, 3, p. 517-523
Publisher:	Wiley Blackwell

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010889783