Task Trade between Similar Countries
The authors propose a theory of task trade between countries that have similar relative factor endowments and technological capabilities but may differ in size. Firms produce differentiated goods by performing a continuum of tasks, each of which ge...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110928160539 http://hdl.handle.net/10986/3582 |
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okr-10986-35822021-04-23T14:02:11Z Task Trade between Similar Countries Grossman, Gene M. Rossi-Hansberg, Esteban ALLOCATION BERTRAND COMPETITION BILATERAL TRADE COMPARATIVE ADVANTAGE CONSUMERS CORPORATION DEMAND CURVE DEVELOPED COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DIVISION OF LABOR ECONOMIC FORCES ECONOMIC GROWTH ECONOMIC POLICY ECONOMIES OF SCALE ELASTICITY ELASTICITY OF SUBSTITUTION EQUATIONS EQUILIBRIUM EQUILIBRIUM PRICES EQUILIBRIUM WAGES EXCESS DEMAND EXPORTS EXTERNALITIES FACTOR MARKETS FREE ENTRY FUNCTIONAL FORMS GENERAL EQUILIBRIUM GLOBAL TRADE GLOBALIZATION HIGH WAGES INCOME INCREASING RETURNS INCREASING RETURNS TO SCALE INDEXES INTEGRATION INTERNATIONAL COMPETITION INTERNATIONAL ECONOMICS INTERNATIONAL PRODUCTION INTERNATIONAL TRADE LABOR DEMAND LABOR ECONOMICS LABOR MARKET LABOR MARKETS LABOR PRODUCTIVITY MONOPOLISTIC COMPETITION MULTIPLE EQUILIBRIA NASH EQUILIBRIUM NEGATIVE EXTERNALITY OCCUPATIONS OUTPUTS OUTSOURCING POLITICAL ECONOMY POLITICAL ECONOMY OF TRADE POLITICAL ECONOMY OF TRADE POLICY PRICE DISCRIMINATION PRODUCTION COSTS PRODUCTIVITY SAVINGS SOURCING SPECIALIZATION SUPPLIERS TRADE IN GOODS TRADE MODEL TRADE MODELS TRADE POLICY VALUE ADDED WAGE RATES WAGE STRUCTURE WAGES WORLD TRADE WORLD TRADE ORGANIZATION WTO The authors propose a theory of task trade between countries that have similar relative factor endowments and technological capabilities but may differ in size. Firms produce differentiated goods by performing a continuum of tasks, each of which generates local spillovers. Tasks can be performed at home or abroad, but offshoring entails costs that vary by task. In equilibrium, the tasks with the highest offshoring costs may not be traded. Among the remainder, those with the relatively higher offshoring costs are performed in the country that has the higher wage and higher aggregate output. The paper discusses the relationship between equilibrium wages, equilibrium outputs, and relative country size and examines how the pattern of specialization reflects the key parameters of the model. 2012-03-19T18:04:59Z 2012-03-19T18:04:59Z 2011-09-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110928160539 http://hdl.handle.net/10986/3582 English Policy Research working paper ; no. WPS 5819 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ALLOCATION BERTRAND COMPETITION BILATERAL TRADE COMPARATIVE ADVANTAGE CONSUMERS CORPORATION DEMAND CURVE DEVELOPED COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DIVISION OF LABOR ECONOMIC FORCES ECONOMIC GROWTH ECONOMIC POLICY ECONOMIES OF SCALE ELASTICITY ELASTICITY OF SUBSTITUTION EQUATIONS EQUILIBRIUM EQUILIBRIUM PRICES EQUILIBRIUM WAGES EXCESS DEMAND EXPORTS EXTERNALITIES FACTOR MARKETS FREE ENTRY FUNCTIONAL FORMS GENERAL EQUILIBRIUM GLOBAL TRADE GLOBALIZATION HIGH WAGES INCOME INCREASING RETURNS INCREASING RETURNS TO SCALE INDEXES INTEGRATION INTERNATIONAL COMPETITION INTERNATIONAL ECONOMICS INTERNATIONAL PRODUCTION INTERNATIONAL TRADE LABOR DEMAND LABOR ECONOMICS LABOR MARKET LABOR MARKETS LABOR PRODUCTIVITY MONOPOLISTIC COMPETITION MULTIPLE EQUILIBRIA NASH EQUILIBRIUM NEGATIVE EXTERNALITY OCCUPATIONS OUTPUTS OUTSOURCING POLITICAL ECONOMY POLITICAL ECONOMY OF TRADE POLITICAL ECONOMY OF TRADE POLICY PRICE DISCRIMINATION PRODUCTION COSTS PRODUCTIVITY SAVINGS SOURCING SPECIALIZATION SUPPLIERS TRADE IN GOODS TRADE MODEL TRADE MODELS TRADE POLICY VALUE ADDED WAGE RATES WAGE STRUCTURE WAGES WORLD TRADE WORLD TRADE ORGANIZATION WTO |
| spellingShingle |
ALLOCATION BERTRAND COMPETITION BILATERAL TRADE COMPARATIVE ADVANTAGE CONSUMERS CORPORATION DEMAND CURVE DEVELOPED COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DIVISION OF LABOR ECONOMIC FORCES ECONOMIC GROWTH ECONOMIC POLICY ECONOMIES OF SCALE ELASTICITY ELASTICITY OF SUBSTITUTION EQUATIONS EQUILIBRIUM EQUILIBRIUM PRICES EQUILIBRIUM WAGES EXCESS DEMAND EXPORTS EXTERNALITIES FACTOR MARKETS FREE ENTRY FUNCTIONAL FORMS GENERAL EQUILIBRIUM GLOBAL TRADE GLOBALIZATION HIGH WAGES INCOME INCREASING RETURNS INCREASING RETURNS TO SCALE INDEXES INTEGRATION INTERNATIONAL COMPETITION INTERNATIONAL ECONOMICS INTERNATIONAL PRODUCTION INTERNATIONAL TRADE LABOR DEMAND LABOR ECONOMICS LABOR MARKET LABOR MARKETS LABOR PRODUCTIVITY MONOPOLISTIC COMPETITION MULTIPLE EQUILIBRIA NASH EQUILIBRIUM NEGATIVE EXTERNALITY OCCUPATIONS OUTPUTS OUTSOURCING POLITICAL ECONOMY POLITICAL ECONOMY OF TRADE POLITICAL ECONOMY OF TRADE POLICY PRICE DISCRIMINATION PRODUCTION COSTS PRODUCTIVITY SAVINGS SOURCING SPECIALIZATION SUPPLIERS TRADE IN GOODS TRADE MODEL TRADE MODELS TRADE POLICY VALUE ADDED WAGE RATES WAGE STRUCTURE WAGES WORLD TRADE WORLD TRADE ORGANIZATION WTO Grossman, Gene M. Rossi-Hansberg, Esteban Task Trade between Similar Countries |
| geographic_facet |
The World Region The World Region |
| relation |
Policy Research working paper ; no. WPS 5819 |
| description |
The authors propose a theory of task
trade between countries that have similar relative factor
endowments and technological capabilities but may differ in
size. Firms produce differentiated goods by performing a
continuum of tasks, each of which generates local
spillovers. Tasks can be performed at home or abroad, but
offshoring entails costs that vary by task. In equilibrium,
the tasks with the highest offshoring costs may not be
traded. Among the remainder, those with the relatively
higher offshoring costs are performed in the country that
has the higher wage and higher aggregate output. The paper
discusses the relationship between equilibrium wages,
equilibrium outputs, and relative country size and examines
how the pattern of specialization reflects the key
parameters of the model. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Grossman, Gene M. Rossi-Hansberg, Esteban |
| author_facet |
Grossman, Gene M. Rossi-Hansberg, Esteban |
| author_sort |
Grossman, Gene M. |
| title |
Task Trade between Similar Countries |
| title_short |
Task Trade between Similar Countries |
| title_full |
Task Trade between Similar Countries |
| title_fullStr |
Task Trade between Similar Countries |
| title_full_unstemmed |
Task Trade between Similar Countries |
| title_sort |
task trade between similar countries |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110928160539 http://hdl.handle.net/10986/3582 |
| _version_ |
1764387307763269632 |