Offshoring and Sequential Production Chains: A General-Equilibrium Analysis

Philipp Harms, Jaewon Jung () and Oliver Lorz
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Jaewon Jung: RWTH Aachen University, http://www.rwth-aachen.de/

No 14.01, Working Papers from Swiss National Bank, Study Center Gerzensee

Abstract: In this paper, we develop a two-sector general equilibrium trade model which includes offshoring, sequential production, and endogenous market structures. We analyze how relative factor endowments and various forms of globalization and technological change affect equilibrium offshoring patterns. We show that, against common belief, a reduction in trade costs lowers the range of tasks offshored even though the aggregate volume of offshoring may increase.

Pages: 32 pages
Date: 2014-01
New Economics Papers: this item is included in nep-int
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Related works:
Journal Article: Offshoring and sequential production chains: A general equilibrium analysis (2021)
Working Paper: Offshoring and Sequential Production Chains: A General Equilibrium Analysis (2017)
Working Paper: Offshoring and Sequential Production Chains: A General Equilibrium Analysis (2016)
Working Paper: Offshoring and Sequential Production Chains: A General-Equilibrium Analysis (2014)
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