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Trade-in-goods and trade-in-tasks: An integrating framework

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  • Baldwin, Richard
  • Robert-Nicoud, Frédéric

Abstract

We introduce a simple but flexible analytical framework in which both trade in goods and trade in tasks arise. We use this framework to provide versions of the gains-from-trade and the famous four HO theorems (Heckscher–Ohlin, factor-price-equalisation, Stolper–Samuelson, and Rybczynski) that apply to this environment. We extend our framework to accommodate monopolistic competition and two-way offshoring and to integrate theoretical results of the early offshoring literature.

Suggested Citation

  • Baldwin, Richard & Robert-Nicoud, Frédéric, 2014. "Trade-in-goods and trade-in-tasks: An integrating framework," Journal of International Economics, Elsevier, vol. 92(1), pages 51-62.
  • Handle: RePEc:eee:inecon:v:92:y:2014:i:1:p:51-62 DOI: 10.1016/j.jinteco.2013.10.002
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    More about this item

    Keywords

    Offshoring; Fragmentation; Task trade; Trade theorems;

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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