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

Hartmut Egger () and Josef Falkinger

No 573, CESifo Working Paper Series from CESifo

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. (search for similar items in EconPapers)
Date: 2001
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Citations: View citations in EconPapers (13)

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