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Feenstra and Hanson (1997) have argued in the context of the North American Free Trade Agreement that US outsourcing to … skill part. As a result, skilled workers in Austria are losing from outsourcing, while gaining in Poland. In Austria …. In both countries outsourcing contributes roughly 35 percent to these changes in the relative wages for skilled workers …
Persistent link: https://www.econbiz.de/10003297588
the public concern can be addressed that international fragmentation and outsourcing to low wage countries lead to … outsourcing and critically assess the role of political intervention that aims to reduce unemployment benefits under …
Persistent link: https://www.econbiz.de/10003204008
. International outsourcing from home declines. Opposite effects are triggered in the partner country. In a welfare analysis we …
Persistent link: https://www.econbiz.de/10011508001
This paper studies how firms' offshoring decisions shape a country's domestic production networks. We develop a model in which heterogeneous firms source inputs from multiple industries located in different domestic regions and foreign countries. Input sourcing entails communication with...
Persistent link: https://www.econbiz.de/10011721740
This paper proposes a model in which the removal of barriers to trade and factor mobility is associated with endogenous fragmentation of the value-added chain. Fragmentation is the outcome of cost competition - the profit-maximizing choice of cost structure by monopolistically competitive firms....
Persistent link: https://www.econbiz.de/10009780202
Fragmentation of the value-added-chain is modeled as the reaction of monopolistically competitive firms to the removal of barriers to trade and factor mobility in an integrated trading environment. Since fragmentation requires high-skilled labor, this form of globalization can induce labor...
Persistent link: https://www.econbiz.de/10009781633
We analyse firms' sourcing decisions under institutional uncertainty in foreign countries. Firms can reduce their uncertainty by observing offshoring firms' behaviour. The model characterises a sequential offshoring equilibrium path, led by the most productive firms in the market. With multiple...
Persistent link: https://www.econbiz.de/10013419347
global markets —such as manufacturing, construction, finance, and wholesale and retail trade— are adversely affected. Finally …
Persistent link: https://www.econbiz.de/10014576951
We study ex post outsourcing of production in an imperfectly discriminating contest, interpreted here as a research … tournament or a procurement contest for being awarded some production contract. We find that the possibility of outsourcing …, outsourcing reduces the procurement costs of inducing a given level of effort if the contest organizer can collect entry fees …
Persistent link: https://www.econbiz.de/10003301026
countries in traditionally labor-intensive manufacturing (and other) activities, and decreases their gains from trade. Second …
Persistent link: https://www.econbiz.de/10011925878