Arbeitspapier

Offshoring and Sequential Production Chains: A General-Equilibrium Analysis

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.

Language
Englisch

Bibliographic citation
Series: Working Paper ; No. 14.01

Classification
Wirtschaft
Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
Trade: General
Multinational Firms; International Business
Organization of Production
Subject
Offshoring
sequential production
global production chain
task trade

Event
Geistige Schöpfung
(who)
Harms, Philipp
Jung, Jaewon
Lorz, Oliver
Event
Veröffentlichung
(who)
Swiss National Bank, Study Center Gerzensee
(where)
Gerzensee
(when)
2014

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Harms, Philipp
  • Jung, Jaewon
  • Lorz, Oliver
  • Swiss National Bank, Study Center Gerzensee

Time of origin

  • 2014

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