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Offshoring in the Global Economy: Microeconomic Structure and Macroeconomic Implications

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Author Info

  • Robert C. Feenstra

    ()
    (University of California, Davis)

Abstract

In the early 1990s, trade and labor economists, noting the fall in wages for low-skilled workers relative to high-skilled workers, began to debate the impact of trade on wages. This debate—which led to a sometimes heated exchange on the role of trade versus the role of technological change in explaining wage movements—continues today, with the focus now shifting to workers in the middle of the wage distribution. In Offshoring in the Global Economy, noted economist Robert Feenstra offers a synthesis of fifteen years of research—linking his own work to related research by others—on the globalization of production and its relation to wage movements. Feenstra first contrasts the views of trade economists Paul Krugman and Edward Leamer, who both relied (to different ends) on the Heckscher–Ohlin model. He then examines the new type of trade model whereby the production processes transfer across countries. Feenstra suggests a new calculation of the factor content of trade that demonstrates the durability of the Heckscher–Ohlin model. Feenstra examines as well the impacts of business cycle volatility, prices, and productivity on the macroeconomics of offshoring. In a concluding chapter, he addresses the broader implications of both empirical and theoretical work on offshoring and suggests directions for future research. Ohlin Lectures series

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Bibliographic Info

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This book is provided by The MIT Press in its series MIT Press Books with number 0262013835 and published in 2010.

Volume: 1
Edition: 1
ISBN: 0-262-01383-5
Handle: RePEc:mtp:titles:0262013835

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Web page: http://mitpress.mit.edu

Related research

Keywords: trade; technological change; wages; globalization; production; Paul Krugman; Edward Leamer; Heckscher-Olin model; offshoring;

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Cited by:
  1. Joachim Wagner, 2011. "Offshoring and firm performance: self-selection, effects on performance, or both?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 147(2), pages 217-247, June.
  2. Kohler, Wilhelm & Wrona, Jens, 2011. "Offshoring tasks, yet creating jobs?," University of Tuebingen Working Papers in Economics and Finance 12, University of Tuebingen, Faculty of Economics and Social Sciences.
  3. Antonis Adam & Thomas Moutos, 2014. "Industry-Level Labour Demand Elasticities Across the Eurozone: Will There Be Any Gain After the Pain of Internal Devaluation?," CESifo Working Paper Series 4858, CESifo Group Munich.
  4. Schäffler, Johannes & Hecht, Veronika & Moritz, Michael, 2014. "Regional determinants of German FDI in the Czech Republic : evidence from a gravity model approach," IAB Discussion Paper 201403, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  5. Tamayo, M. P. & Huergo, E., 2013. "The effect of high-tech services offshoring on skilled employment: intra-firm evidence," MPRA Paper 43970, University Library of Munich, Germany.
  6. Neil Foster, 2012. "Offshoring and Labour Markets," FIW Specials series 003, FIW.
  7. Gnidchenko, Andrey A., 2012. "Новый Метод Оценки Структуры И Базы Экспортного Потенциала
    [The new method for estimating the structure and the basis of export potential]
    ," MPRA Paper 43691, University Library of Munich, Germany.
  8. Sotiris Blanas, 2012. "Intra-Firm Trade and Employment in US Manufacturing," FIW Working Paper series 077, FIW.
  9. Timmer, Marcel P. & Los, Bart & Stehrer, Robert & de Vries, Gaaitzen, 2013. "Fragmentation, incomes and jobs: an analysis of European competitiveness," Working Paper Series 1615, European Central Bank.
  10. Oliver Denk & Robert P. Hagemann & Patrick Lenain & Valentin Somma, 2013. "Inequality and Poverty in the United States: Public Policies for Inclusive Growth," OECD Economics Department Working Papers 1052, OECD Publishing.
  11. Gordon H. Hanson, 2012. "The Rise of Middle Kingdoms: Emerging Economies in Global Trade," NBER Working Papers 17961, National Bureau of Economic Research, Inc.
  12. Ariel Burstein & Jonathan Vogel, 2010. "Globalization, Technology, and the Skill Premium: A Quantitative Analysis," NBER Working Papers 16459, National Bureau of Economic Research, Inc.
  13. Kaplan, David S. & Lederman, Daniel & Robertson, Raymond, 2012. "What drives short-run labor market volatility in offshoring industries ? evidence from northern Mexico during 2007-2009," Policy Research Working Paper Series 6268, The World Bank.
  14. Wilhelm Kohler & Jens Wrona, 2010. "Offshoring Tasks, yet Creating Jobs?," CESifo Working Paper Series 3019, CESifo Group Munich.
  15. David H. Autor & David Dorn & Gordon H. Hanson, 2013. "The China Syndrome: Local Labor Market Effects of Import Competition in the United States," American Economic Review, American Economic Association, vol. 103(6), pages 2121-68, October.

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