Union douanière et coordination des échanges

Pierre Villa

Annals of Economics and Statistics, 1998, issue 52, 163-201

Abstract: The outsourcing of activities have been taking a peculiar shape recently. Human capital has remote control of the factories which are produced according to the local technology, and it defines the home technology in which it commits these factories and is committed itself. We introduce this idea in a hierarchical model of international trade with two countries, three factors and two final goods: the traditional one produced with labour and capital and the modern one produced with a non traded intermediate good and human capital. Usual statements in international economics are modified because of three properties: (1) physical capital movements are complementary to the outsourcing of human capital; (2) the outsourcing of human capital can reverse the direction of the trade stream (3) welfare is related to a "subrogate" trade, which is obtained in reallocating production to countries according to their factor endowments.

Date: 1998
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Persistent link: https://EconPapers.repec.org/RePEc:adr:anecst:y:1998:i:52:p:163-201

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