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Offshoring: General Equilibrium Effects on Wages, Production and Trade Author info | Abstract | Publisher info | Download info | Related research | Statistics Richard E. Baldwin
Frédéric Robert-Nicoud
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A simple model of offshoring is used to integrate the complex gallery of results that exist in thetheoretical offshoring/fragmentation literature. The paper depicts offshoring as 'shadowmigration' and shows that this allows straightforward derivation of the general equilibriumeffects on prices, wages, production and trade (necessary and sufficient conditions are provided).We show that offshoring requires modification of the four HO theorems, so econometricians whoignore offshoring might reject the HO theorem when a properly specified version held in the data.We also show that offshoring is an independent source of comparative advantage and can lead tointra-industry trade in a Walrasian setting.
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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number
dp0794.
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Date of creation: May 2007Date of revision:
Handle: RePEc:cep:cepdps:dp0794Contact details of provider: Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP
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Keywords: Offshoring ; Shadow migration ; Inter-industry trade ; Intra-industry trade ; Tradetheorems ; Other versions of this item:
Paper Baldwin, Richard & Robert-Nicoud, Frédéric, 2007.
"Offshoring: General Equilibrium Effects on Wages, Production and Trade ,"
CEPR Discussion Papers
6218, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Richard Baldwin & Frederic Robert-Nicoud, 2007.
"Offshoring: General Equilibrium Effects on Wages, Production and Trade ,"
NBER Working Papers
12991, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Richard Baldwin & Frédéric Robert-Nicoud, 2008.
"Offshoring: General Equilibrium Effects on Wages, Production and Trade ,"
Development Working Papers
250, Centro Studi Luca d\'Agliano, University of Milano.
[Downloadable!] Find related papers by JEL classification: F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes
This paper has been announced in the following NEP Reports :
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Feenstra, Robert C & Hanson, Gordon H, 1996.
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repec:rus:hseeco:123689 is not listed on IDEAS
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Nana Bourtchouladze, 2007.
"Offshoring and Heterogeneous Firms: One Job Offshored, One Job Lost? ,"
HEI Working Papers
28-2007, Economics Section, The Graduate Institute of International Studies, revised Dec 2007.
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Amador, João & Cabral, Sónia, 2008.
"Vertical specialization across the world: a relative measure ,"
MPRA Paper
9618, University Library of Munich, Germany.
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Rosario Crinò, 2009.
"Service Offshoring and White-Collar Employment ,"
UFAE and IAE Working Papers
775.09, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
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Other versions: Michael Hübler, 2007.
"A Simple Model of Outsourcing with Cournot Competition ,"
Kiel Working Papers
1320, Kiel Institute for the World Economy.
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Andrés RodrÃguez-Clare, 2007.
"Offshoring in a Ricardian World ,"
Working Papers
id:1043, esocialsciences.com.
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Other versions: Ekholm, Karolina & Ulltveit-Moe, Karen-Helene, 2007.
"A New Look at Offshoring and Inequality: Specialization Versus Competition ,"
CEPR Discussion Papers
6402, C.E.P.R. Discussion Papers.
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Amador, João & Cabral, Sónia, 2008.
"International fragmentation of production in the Portuguese economy: What do different measures tell us? ,"
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9783, University Library of Munich, Germany.
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Gene M. Grossman & Esteban Rossi-Hansberg, 2008.
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NBER Working Papers
14554, National Bureau of Economic Research, Inc.
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