Task Trade between Similar Countries
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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.
Palabras clave
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