Global sourcing â€“ a critical reconsideration of sector definitions
I introduce an alternative parameter-based definition of component- and headquarter-intensive sectors into the seminal model of global sourcing by AntrÃ s and Helpman (2004, JPE). This approach overcomes problems of the original sector definition like counter intuitive classifications or industries that are not classified as either component- or headquarter-intensive. The strong empirical evidence for the model`s predictions is also based on a similar sector definition. With a numerical approach I show that a richer set of sourcing modes can arise in equilibrium. Nonetheless, the main results of AntrÃ s and Helpman are robust.
Volume (Year): 31 (2011)
Issue (Month): 1 ()
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