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International outsourcing in a two-Sector Heckscher-Ohlin model


Egger, H (2002). International outsourcing in a two-Sector Heckscher-Ohlin model. Journal of Economic Integration, 17(4):689-709.

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.

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.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Language:English
Date:2002
Deposited On:07 May 2008 07:09
Last Modified:05 Apr 2016 12:23
Publisher:Center for International Economics, Sejong University
ISSN:1225-651X
Official URL:http://sejong.metapress.com/app/home/contribution.asp?referrer=parent&backto=issue,4,11;journal,21,43;linkingpublicationresults,1:109474,1
Permanent URL: http://doi.org/10.5167/uzh-2467

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