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

  • Richard Baldwin
  • Frédéric Robert-Nicoud

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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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 15882.

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Date of creation: Apr 2010
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Publication status: published as 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:nbr:nberwo:15882
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