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International Trade and Local Organization of Production - Two Elementary Propositions

Sugata Marjit

Discussion Papers from University of Nottingham, GEP

Abstract: This paper argues that international trade should affect local organization of production in a systematic way. By using the standard Heckscher-Ohlin-Samuelson model we show that the export sector is more likely to demonstrate fragmentation, entrepreneurship and outsourcing compared to the import-competing sector in a typical labor abundant country. Liberal trade regime will promote entrepreneurship in general. This is the first elementary proposition. Local outsourcing also establishes a clear link between trade and productivity. This is the second elementary proposition.

Keywords: Trade; outsourcing; entrepreneurship; productivity (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:not:notgep:09/16

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