This website uses cookies.

By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device to enhance site navigation and analyze site performance and traffic. For more information on our use of cookies, please see our Privacy Policy.

  1. Home
  2. Journals
  3. American Economic Review
  4. December 2012
  5. Offshoring and the Role of Trade Agreements

Offshoring and the Role of Trade Agreements

  • Pol Antràs
  • Robert W. Staiger
American Economic Review
vol. 102, no. 7, December 2012
(pp. 3140-83)
Download Full Text PDF

Abstract

The rise of offshoring of intermediate inputs raises important questions for commercial policy. Do the distinguishing features of offshoring introduce novel reasons for trade policy intervention? Does offshoring create new problems of global policy cooperation whose solutions require international agreements with novel features? In this paper we provide answers to these questions, and thereby initiate the study of trade agreements in the presence of offshoring. We argue that the rise of offshoring will make it increasingly difficult for governments to rely on traditional GATT/WTO concepts and rules -- such as market access, reciprocity and non-discrimination -- to solve their trade-related problems. (JEL F12, F13, L24)

Citation

Antràs, Pol, and Robert W. Staiger. 2012. "Offshoring and the Role of Trade Agreements." American Economic Review, 102 (7): 3140-83. DOI: 10.1257/aer.102.7.3140

Additional Materials

JEL Classification

  • F12 Models of Trade with Imperfect Competition and Scale Economies
  • F13 Trade Policy; International Trade Organizations
  • L24 Contracting Out; Joint Ventures; Technology Licensing