Outsourcing and trade in a spatial world

Arbeitspapier

This paper provides an analysis of outsourcing and trade in a spatial model – la Hotelling. In this setting, we discuss the trade-off between transport-cost-related disadvantages and outsourcing-induced production cost advantages of a large economy. The model gives a rich picture of possible trade and welfare effects of a movement towards free trade and points to the role of national transport costs for explaining these effects. Moreover, it gives economic insights in the countries? incentives to lower tariffs and to participate in free trade agreements with partner countries that differ in size and economic capacity.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 1349

Classification and Topics

• Classification: Wirtschaft ; Oligopoly and Other Imperfect Markets ; Economic Integration ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
• Subject: international outsourcing ; international trade ; spatial competition ; Outsourcing ; Aussenwirtschaft ; Hotelling Modell ; Standortwettbewerb ; Transportkosten ; Komparativer Kostenvorteil ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Egger, Hartmut ; Egger, Peter
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2004

Further information

• Handle: http://hdl.handle.net/10419/18712
• Last update: 10.03.2025, 11:43 AM CET