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Trading Tasks: A Simple Theory of Offshoring Author info | Abstract | Publisher info | Download info | Related research | Statistics Gene M. Grossman
Esteban Rossi-Hansberg
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We propose a theory of the global production process that focuses on tradeable tasks, and use it to study how falling costs of offshoring affect factor prices in the source country. We identify a productivity effect of task trade that benefits the factor whose tasks are more easily moved offshore. In the light of this effect, reductions in the cost of trading tasks can generate shared gains for all domestic factors, in contrast to the distributional conflict that typically results from reductions in the cost of trading goods. (JEL F11, F16)
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Article provided by American Economic Association in its journal American Economic Review .
Volume (Year): 98 (2008)
Issue (Month): 5 (December)
Pages: 1978-97
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Handle: RePEc:aea:aecrev:v:98:y:2008:i:5:p:1978-97Contact details of provider: Email: Web page: http://www.aeaweb.org/aer/ More information through EDIRC
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