Advanced Search
MyIDEAS: Login to save this article or follow this journal

Outsourcing and Wage Inequality in a Dynamic Product Cycle Model

Contents:

Author Info

  • Selin Sayek
  • Fuat Sener

Abstract

This paper constructs a dynamic North-South trade model with outsourcing and endogenous innovation. Production of high quality goods is first performed in the North (Northern phase), then split between the North and the South (Outsourcing phase), and finally shifted to the South (Southern phase). This cycle is reignited whenever a Northern firm innovates a higher quality product. We find that an increase in the fraction of outsourced production raises the Northern skill premium unambiguously, while raising the Southern skill premium if and only if the skill intensity of outsourced production is higher than that of local Southern production. Copyright � 2006 The Authors; Journal compilation � 2006 Blackwell Publishing Ltd.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9361.2005.00297.x
File Function: link to full text
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of Development Economics.

Volume (Year): 10 (2006)
Issue (Month): 1 (02)
Pages: 1-19

as in new window
Handle: RePEc:bla:rdevec:v:10:y:2006:i:1:p:1-19

Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669

Order Information:
Web: http://www.blackwellpublishing.com/subs.asp?ref=1363-6669

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Arijit Mukherjee & Yingyi Tsai, . "International Outsourcing and Welfare Reduction: an Entry-deterrence Story," Discussion Papers 08/45, University of Nottingham, GEP.
  2. Devashish Mitra & Priya Ranjan, 2005. "Y2K and Offshoring: The Role of External Economies and Firm Heterogeneity," NBER Working Papers 11718, National Bureau of Economic Research, Inc.
  3. Yoshinori Kurokawa, 2009. "Is a Skill Intensity Reversal a Mere Theoretical Curiosum? Evidence from the U.S. and Mexico," Tsukuba Economics Working Papers 2009-010, Economics, Graduate School of Humanities and Social Sciences, University of Tsukuba.
  4. Arti Grover, 2005. "Outsourcing Versus Foreign Direct Investment--A Welfare Analysis," Working papers 140, Centre for Development Economics, Delhi School of Economics.
  5. Wolf-Heimo Grieben & Fuat Sener, 2009. "Labor Unions, Globalization, and Mercantilism," CESifo Working Paper Series 2889, CESifo Group Munich.
  6. Gao, Ting, 2007. "Trade costs, international production shifting, and growth," European Economic Review, Elsevier, vol. 51(2), pages 317-335, February.
  7. Arti Grover, 2010. "Outsourcing Versus Foreign Direct Investment: A Welfare Analysis," Working Papers id:3010, eSocialSciences.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:bla:rdevec:v:10:y:2006:i:1:p:1-19. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.