Offshoring in a Ricardian World

Andrés Rodríguez-Clare ()
Authors registered in the RePEc Author Service: Andres Rodriguez-Clare

Working Papers from eSocialSciences

Abstract: Falling costs of coordination and communication have allowed firms in rich countries to fragment their production process and offshore an increasing share of the value chain to low-wage countries. This paper proposes a Ricardian model where both of these effects are present and analyzes the effects of increased fragmentation and offshoring in the short run and in the long run (when technology levels are endogenous). Long run analysis shows that in particular the rich country always gains from increased fragmentation , whereas poor countries see their static gains partially eroded by a decline in their research efforts.

Keywords: fragmentation; outsourcing; low-wage countries effect; research efforts.; value chain; Economics (search for similar items in EconPapers)
Date: 2007-07
Note: Institutional Papers
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Related works:
Journal Article: Offshoring in a Ricardian World (2010)
Working Paper: Offshoring in a Ricardian World (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:ess:wpaper:id:1043

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