A North-South model of outsourcing and growth
A North-South model of outsourcing and growth
复制标题
外包和增长的南北模式
DOI:
10.1111/rode.12382
复制
发表时间:
2018
影响因子:
1.6
通讯作者:
Yuki
中科院分区:
文献类型:
--
作者:
Saito;Yuki
In this paper, I formulate a simple North–South R&D‐based growth model where final goods firms in the North endogenously determine the range of international outsourcing of intermediate goods to the South. I show that a fall in the trade cost (through trade liberalization) of intermediate goods in the North: (i) reduces the wage of the North relative to that of the South; (ii) increases the outsourced variety of intermediate goods in the North; and (iii) stimulates Northern R&D activity and economic growth in both countries. By conducting welfare analysis, I also show that a decline in the trade cost of intermediate goods in the North improves welfare in the South more than in the North.