International Trade and Local Organization of Production - Two Elementary Propositions
Centre for Studies in Social Sciences, Calcutta; City University of Hong Kong (CityUHK) - Department of Economics & Finance
February 1, 2009
Univ. of Nottingham Research Paper No. 2009/16
This paper argues that international trade should affect local organization of production in a systematic way. By using the standard Heckscher-Ohlin-Samuelson model we show that the export sector is more likely to demonstrate fragmentation, entrepreneurship and outsourcing compared to the import-competing sector in a typical labor abundant country. Liberal trade regime will promote entrepreneurship in general. This is the first elementary proposition. Local outsourcing also establishes a clear link between trade and productivity. This is the second elementary proposition.
Number of Pages in PDF File: 19
Keywords: Trade, outsourcing, entrepreneurship, productivity
JEL Classification: F11, D23, J54, O47working papers series
Date posted: August 13, 2009
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