This paper challenges the conventional academic view that international outsourcing is just another form of gainful trade. Contrary to that view, we show that labourservice outsourcing can reduce the highwage country's welfare even when productmarket trade is beneficial, within a model that...

This paper questions the feasibility of Pareto-type gains from international factor movements, without lump-sum compensations, when taxes (subsidies) on factors and consumers located within the same country cannot discriminate on the basis of national origin. As the analysis shows, no...

This paper develops empirically feasible tests of the production side of the Heckscher-Ohlin model of international trade in the case where factor prices are not equal between countries. To allow for factor-price differences across industries within each country, three variants of the model are...