Theory and Methods Research Paper 2009 / 16 International Trade and Local Organization of Production - Two Elementary Propositions
نویسندگان
چکیده
This paper argues that international trade should affect local organization of production in a systematic way. By using the standard Heckscher-Ohlin-Samuelson model we show that the export sector is more likely to demonstrate fragmentation, entrepreneurship and outsourcing compared to the importcompeting sector in a typical labor abundant country. Liberal trade regime will promote entrepreneurship in general. This is the first elementary proposition. Local outsourcing also establishes a clear link between trade and productivity. This is the second elementary proposition. JEL classification: F11, D23, J54, O47
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