A Complete Characterization of the Distributional Effects of International Outsourcing in the Heckscher-Ohlin Model

36 Pages Posted: 23 Oct 2001

See all articles by Hartmut Egger

Hartmut Egger

University of Zurich - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Josef Falkinger

University of Zurich - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute); IZA Institute of Labor Economics

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

Egger, Hartmut and Falkinger, Josef, A Complete Characterization of the Distributional Effects of International Outsourcing in the Heckscher-Ohlin Model (October 2001). CESifo Working Paper Series No. 573. Available at SSRN: https://ssrn.com/abstract=287116

Hartmut Egger

University of Zurich - Department of Economics ( email )

Zürichbergstrasse 14
CH-8032 Zurich
Switzerland

HOME PAGE: http://www.wwi.unizh.ch/staff/egger/index.php

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Poschinger Str. 5
Munich, DE-81679
Germany

Josef Falkinger (Contact Author)

University of Zurich - Department of Economics ( email )

Zuerich, 8006
Switzerland

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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