Download This PaperA Complete Characterization of the Distributional Effects of International Outsourcing in the Heckscher-Ohlin Model
36 Pages Posted: 23 Oct 2001
Date Written: October 2001
Abstract
This paper determines the distributional effects of international outsourcing in a two sector Heckscher-Ohlin type model. It is shown that the factor-biased and the sector-biased impact of international outsourcing discussed in the literature can be seen as special cases of the more general characterization presented in this paper. Concerning the welfare implications of international outsourcing, the main finding is that a Pareto-improvement cannot be excluded from a theoretical point of view.
Keywords: International Outsourcing, General Equilibrium Analysis, Distributional Effects, Welfare Effects
JEL Classification: F11, F13, F19
Suggested Citation: Suggested Citation
CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
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Munich, DE-81679
Germany
CESifo (Center for Economic Studies and Ifo Institute)
Poschinger Str. 5
Munich, DE-81679
Germany
HOME PAGE: http://www.CESifo.de
IZA Institute of Labor Economics
P.O. Box 7240
Bonn, D-53072
Germany
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