Trade in intermediate goods as one possible link between rising trade and foreign direct investment is examined. To … explain growing intermediate goods trade, three hypotheses are brought forward: outsourcing, global sourcing and the … reason of growing trade in intermediate goods in the cross-section and the time-series framework. The evidence for …

biased technical progress rather than by increasing international trade with low wage countries. However, in linking prices … for final goods with prices of primary factors, most empirical studies have only dealt with international trade in final … goods and have thereby neglected the impact of international outsourcing. In this paper it is argued that outsourcing can be …