This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

American Economic Journal: Macroeconomics: Vol. 2 No. 2 (April 2010)

Expand

Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter Subscription Information
(Institutional Administrator Access)

Explore:

AEJ: Macro - All Issues

AEJ: Macro Forthcoming Articles

Offshoring in a Ricardian World

Article Citation

Rodríguez-Clare, Andrés. 2010. "Offshoring in a Ricardian World." American Economic Journal: Macroeconomics, 2(2): 227-58.

DOI: 10.1257/mac.2.2.227

Abstract

This paper proposes a Ricardian model to understand the short-run and long-run aggregate effects of increased fragmentation and offshoring on rich and poor countries. The short-run analysis shows that, when offshoring is sufficiently high, further increases in offshoring benefit the poor country and hurt the rich country. But these effects may be reversed in the long run as countries adjust their research efforts in response to increased offshoring. In particular, in the long run, the rich country always gains from increased offshoring, whereas poor countries see their static gains partially eroded by a decline in their research efforts. (JEL F12, F23, L24, M16)

Article Full-Text Access

Full-text Article

Additional Materials

Download Data Set (19.92 KB) | Appendix (152.33 KB)

Authors

Rodríguez-Clare, Andrés (PA State U)

JEL Classifications

F12: Models of Trade with Imperfect Competition and Scale Economies
F23: Multinational Firms; International Business
L24: Contracting Out; Joint Ventures; Technology Licensing
M16: International Business Administration

Comments

View Comments on This Article (0) | Login to post a comment


American Economic Journal: Macroeconomics


Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

AEJ: Macro - All Issues

AEJ: Macro - Forthcoming Articles

Virtual Field Journals


AEA Member Login:


AEAweb | AEA Journals | Contact Us