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We survey an emerging literature at the intersection of organizational economics and international trade. We argue that a proper modelling of the organizational aspects of production provides valuable insights on the aggregate workings of the world economy. In reviewing the literature, we...
Persistent link: https://www.econbiz.de/10005791747
Trade in business services has been attracting attention from academic researchers, policy makers, and business journalists. While there are many anecdotes, there has been little in the way of formal theory applied to this issue. In this paper, we adapt a general model of fragmentation of...
Persistent link: https://www.econbiz.de/10005662176
workers at home and abroad. In an extension to our baseline model, we illustrate that offshoring production from the high …
Persistent link: https://www.econbiz.de/10004964417
We propose an endogenous growth model with offshoring to investigate its effects on product innovation and growth in … the country of origin. Offshoring is associated with reduced feedback from offshored plants to domestic labs as well as … static decision to relocate plants but not R&D. Hence, offshoring may be chosen by firms when it damages the growth rate of …
Persistent link: https://www.econbiz.de/10005123630
I survey the influence of Grossman and Hart's (1986) seminal paper in the field of International Trade. I discuss the implementation of the theory in open-economy environments and its implications for the international organization of production and the structure of international trade flows. I...
Persistent link: https://www.econbiz.de/10009320400
How successful is the theory of the firm in explaining intra-firm trade? To answer this question we exploit a unique dataset of 1,141,393 French import transactions, spanning across firm, countries and products in 1999, and reporting whether a transaction is intra-firm. Overall, we find support...
Persistent link: https://www.econbiz.de/10008567796
We study the determinants of the extent of outsourcing and of direct foreign investment in an industry in which …
Persistent link: https://www.econbiz.de/10005067585
We study the decision of firms between vertical integration and outsourcing in a dynamic setting with product … innovation. In so doing, we model an industry in which R&D is performed by independent research labs and outsourcing production … requires complementary upstream and downstream inventions. In the presence of search friction and incomplete outsourcing …
Persistent link: https://www.econbiz.de/10005661520
Using a repeated game approach, this paper models a North-South trade agreement under which North offers South improved market access (via a tariff reduction) if South agrees to prevent local imitation by strengthening its protection of intellectual property rights (IPRs). We show that such an...
Persistent link: https://www.econbiz.de/10005792159
-way offshoring/trade-in-tasks. …
Persistent link: https://www.econbiz.de/10008468674