Offshoring and Sequential Production Chains: A General-Equilibrium Analysis

Philipp Harms, Jaewon Jung () and Oliver Lorz
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Jaewon Jung: University of Aachen

MAGKS Papers on Economics from Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung)

Abstract: In this paper, we develop a two-sector general equilibrium trade model which includes offshoring, sequential production, and endogenous market structures. We analyze how relative factor endowments and various forms of globalization and technological change affect equilibrium offshoring patterns. We show that, against common belief, a reduction in trade costs lowers the range of tasks offshored even though the aggregate volume of offshoring may increase.

Keywords: Offshoring; sequential production; global production chain; task trade (search for similar items in EconPapers)
JEL-codes: D24 F10 F23 L23 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2014
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http://www.uni-marburg.de/fb02/makro/forschung/magkspapers/02-2014_lorz.pdf First 201402 (application/pdf)

Related works:
Journal Article: Offshoring and sequential production chains: A general equilibrium analysis (2021)
Working Paper: Offshoring and Sequential Production Chains: A General Equilibrium Analysis (2017)
Working Paper: Offshoring and Sequential Production Chains: A General Equilibrium Analysis (2016)
Working Paper: Offshoring and Sequential Production Chains: A General-Equilibrium Analysis (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:mar:magkse:201402

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