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Rodríguez-Clare, Andrés. 2010. "Offshoring in a Ricardian World."
,
2(2): 227-58.
Show Article Details
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)
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Appendix
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
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