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Trade-in-goods and trade-in-tasks: An Integrating Framework

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  • Baldwin, Richard
  • Robert-Nicoud, Frédéric

Abstract

Our paper integrates results from trade-in-task theory into mainstream trade theory by developing trade-in-task analogues to the four famous theorems (Heckscher-Ohlin, factor price equalisation, Stolper-Samuelson, and Rybczynski) and showing the standard gains-from-trade theorem does not hold for trade-in-tasks. We show trade-in-tasks creates intraindustry trade in a Walrasian economy, and derive necessary and sufficient conditions for analyzing the impact of trade-in-tasks on wages and production. Extensions of the integrating framework easily accommodate monopolistic competition and two-way offshoring/trade-in-tasks.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 7775.

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Date of creation: Apr 2010
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Handle: RePEc:cpr:ceprdp:7775

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Keywords: globalisation; offshoring; trade in tasks; trade theory;

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  1. Machines and foreigners
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