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ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
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http://hdl.handle.net/10419/18712
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| Title: | | Outsourcing and trade in a spatial world  |
| Authors: | | Egger, Hartmut Egger, Peter |
| Issue Date: | | 2004 |
| Series/Report no.: | | CESifo working papers 1349 |
| Abstract: | | This paper provides an analysis of outsourcing and trade in a spatial model – la Hotelling. In this setting, we discuss the trade-off between transport-cost-related disadvantages and outsourcing-induced production cost advantages of a large economy. The model gives a rich picture of possible trade and welfare effects of a movement towards free trade and points to the role of national transport costs for explaining these effects. Moreover, it gives economic insights in the countries? incentives to lower tariffs and to participate in free trade agreements with partner countries that differ in size and economic capacity. |
| Subjects: | | international outsourcing international trade spatial competition |
| JEL: | | L13 F15 F12 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
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