Export-magnification effect of offshoring

Arbeitspapier

We propose a multi-country general equilibrium model with three sectors and heterogeneous firms to analyze the linkages between offshoring and exports. We model a world consisting of many advanced countries that trade differentiated goods among each other and one 'workbench country' that specializes on the production of an intermediate good and engages in inter-industry trade with each of the advanced countries. We show analytically that a closer integration of a 'workbench country' into the world economy allows more final goods producers to become exporters and raises the export quantities of incumbent exporters ('export-magnification effect'). At the same time, the least productive firms are forced to leave the market. Both effects raise the aggregate efficiency in the differentiated good sector. As a result, real wages and aggregate welfare unequivocally rise in the long run. However, this is associated with large-scale reallocations between sectors and within the differentiated good sector, which may be painful in the presence of frictions.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IAW Diskussionspapiere ; No. 63

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Multinational Firms; International Business ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
• Thema: offshoring ; multinational firms ; distance costs ; Offshoring ; Multinationales Unternehmen ; Exportindustrie ; Industriegüteraußenhandel ; Produktdifferenzierung ; Mehr-Länder-Modell ; Mehr-Sektoren-Modell ; Allgemeines Gleichgewicht ; Wohlfahrtseffekt ; Reallohn ; Strukturwandel ; Theorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Kleinert, Jörn ; Zorell, Nico
• Ereignis: Veröffentlichung
• (wer): Institut für Angewandte Wirtschaftsforschung (IAW)
• (wo): Tübingen
• (wann): 2010

Weitere Informationen

• Handle: http://hdl.handle.net/10419/39216
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ