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We look at managerial and production wages in countries that differ in size and relative endowments. Production labor is assumed to be a variable input composed of tradable tasks, while managerial labor is a fixed, non-tradable input. Task performance is subject to increasing returns to scale on...
Persistent link: https://www.econbiz.de/10010274482
This paper uses micro-data from the World Bank Enterprise Surveys to investigate how foreign ownership affects the likelihood of manufacturers in developing countries to export and/or import both directly and in- directly. Applying propensity score matching to control for differences across...
Persistent link: https://www.econbiz.de/10011712691
Does trade improve institutions and contribute to long run growth? I develop a theory of trade, in which trade liberalization provides incentive to change institutions in two ways. On the one hand, trade leads to specialization according to comparative advantage, expanding the industries that do...
Persistent link: https://www.econbiz.de/10011400598
We look at the effect of domestic redistribution policy on offshoring in an asymmetric two country model of … by the share of offshoring firms in the economy. The intuition for this result is straightforward. The progressive income … therefore affect the domestic economy not only directly but also via changes in the amount of offshoring. This has important …
Persistent link: https://www.econbiz.de/10012623131
Persistent link: https://www.econbiz.de/10003613836
). It turns out that, compared to non-offshoring firms, firms that relocated activities were larger and more productive, and … relocate, and this points to self-selection of "better" firms into offshoring. This finding is in line with results from recent … others were not. Broadly in line with hypotheses derived from the literature there is no evidence that offshoring has a …
Persistent link: https://www.econbiz.de/10010270300
of competitive pressure: relocation of assembly operations and offshoring of automotive parts production. The knowledge …
Persistent link: https://www.econbiz.de/10010313754
The paper develops a simple theoretical model of inventory control in global value chains. It identifies a role for intermediaries in managing inventory, and shows that inserting an intermediary as an additional link in a value chain is profitable when demand volatility is high. It also provides...
Persistent link: https://www.econbiz.de/10011301580
input supplier (vertical integration vs. outsourcing), as well as the location of intermediate input production (offshore vs … intensity, but favors outsourcing in industries of high sourcing intensity. Moreover, we find that productivity boosts … offshoring throughout all industries, with the effect increasing monotonically in the sourcing intensity. Our results lend strong …
Persistent link: https://www.econbiz.de/10011301608
This paper analyzes the behavior of firm(s) serving its products to two countries having different consumers in terms of their valuation of product quality. The home-market of firm(s) is a developed country with small population but high valuation of product quality, while the foreign is a...
Persistent link: https://www.econbiz.de/10011340722