Offshoring in a Ricardian World

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Offshoring in a Ricardian World †

Technological change has led to a dramatic decline in the cost of communication and in the cost of coordinating activities performed in different locations. This has allowed firms in rich countries to fragment their production process and offshore an increasing share of the value chain to low-wage countries. 2 Richard Baldwin (2006) refers to this phenomenon as the “second unbundling.” In his w...

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ژورنال

عنوان ژورنال: American Economic Journal: Macroeconomics

سال: 2010

ISSN: 1945-7707,1945-7715

DOI: 10.1257/mac.2.2.227