Delocation, home wages and welfare
I present a general equilibrium model of delocation where firms move from the North to the South to benefit from low wages. As suggested by the large empirical litterature, welfare in the North increases when the host country is not technologically too lagged. Moreover, I show that vertical technology transfer to the South plays a major role in enhancing welfare of workers-consumers in the North and in the South. This analysis helps explaining the differences in empirical findings on production delocation.
|Date of creation:||25 Feb 2014|
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- Aitken, Brian & Harrison, Ann & Lipsey, Robert E., 1996.
"Wages and foreign ownership A comparative study of Mexico, Venezuela, and the United States,"
Journal of International Economics,
Elsevier, vol. 40(3-4), pages 345-371, May.
- Brian Aitken & Ann Harrison & Robert E. Lipsey, 1995. "Wages and Foreign Ownership: A Comparative Study of Mexico, Venezuela and the United States," NBER Working Papers 5102, National Bureau of Economic Research, Inc.
- Aitken, B. & Harrison, A. & Lipsey, R.E., 1995. "Wages and Foreign Ownership: A Comparative Study of Mexico, Venezuela, and the United States," Papers 95-21, Columbia - Graduate School of Business.
- Keuschnigg, Christian & Ribi, Evelyn, 2009. "Outsourcing, unemployment and welfare policy," Journal of International Economics, Elsevier, vol. 78(1), pages 168-176, June.
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- Christian Keuschnigg & Evelyn Ribi, 2007. "Outsourcing, Unemployment and Welfare Policy," Working Papers 0720, Oxford University Centre for Business Taxation.
- Keuschnigg, Christian & Ribi, Evelyn, 2007. "Outsourcing, Unemployment and Welfare Policy," CEPR Discussion Papers 6605, C.E.P.R. Discussion Papers.
- Shapiro, Carl & Stiglitz, Joseph E, 1985. "Can Unemployment Be Involuntary? Reply [Equilibrium Unemployemnt as a Worker Discipline Device]," American Economic Review, American Economic Association, vol. 75(5), pages 1215-1217, December.
- MartÌn Rama, 2003. "Globalization and the Labor Market," World Bank Research Observer, World Bank Group, vol. 18(2), pages 159-186.
- Falk, Martin & Koebel, Bertrand M, 2002. " Outsourcing, Imports and Labour Demand," Scandinavian Journal of Economics, Wiley Blackwell, vol. 104(4), pages 567-586, December.
- David A. Riker & S. Lael Brainard, 1997. "U.S. Multinationals and Competition from Low Wage Countries," NBER Working Papers 5959, National Bureau of Economic Research, Inc. Full references (including those not matched with items on IDEAS)
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