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Morihiro Yomogida 《Review of International Economics》2010,18(3):531-539
We examine the welfare effect of fragmentation with a general‐equilibrium model of monopolistic competition. Using the efficiency property of monopolistic competition models, we develop a diagram that is used to show that fragmentation of production arises, i.e. firms in a country specialize in developing blueprints and out‐source the manufacturing of their products to the other country. Such fragmentation allows countries to benefit from trade due to two different sources: comparative advantage and product diversity. We show how these two sources result in gains from trade induced by this production fragmentation. 相似文献
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This article develops a general equilibrium model with a vertical production structure to examine the relationship between offshore outsourcing and international migration, especially emphasizing their effects on the wages of skilled and unskilled workers. Two‐way outsourcing (simultaneous insourcing and outsourcing) in skilled‐labor–intensive services arises because of product differentiation and scale economies, and outsourcing in unskilled‐labor–intensive processing occurs because of factor endowment differences. The tractability of the model allows us to rank outsourcing and migration, according to the wages of both types of workers. Finally, we also analyze under what conditions outsourcing and international migration are complements or substitutes. 相似文献
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