International Outsourcing in a Two-Sector Heckscher-Ohlin Model

Hartmut Egger ()

Journal of Economic Integration, 2002, vol. 17, 687-709

Abstract:

This paper analyzes the distributional effects of international outsourcing in a two sector Heckscher-Ohlin type model if both sectors get economical access to cost-saving international outsourcing. Thereby, it is shown that if both sectors are engaged in international outsourcing in equilibrium, the cost-saving effects of outsourcing as well as the factor contents of the outsourced fragments are relevant for the factor price effects. Concerning the Pareto-criterion the main finding is that a Pareto-improving factor price impact of international outsourcing cannot be excluded from a theoretical point of view.

Keywords: International Outsourcing; General Equilibrium Analysis; Distributional Effects; Welfare Effects (search for similar items in EconPapers)
JEL-codes: F14 F15 F16 F40 (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:ris:integr:0215

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