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http://hdl.handle.net/10419/55652
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| Title: | | The asymmetric effects of tariffs on intra-firm trade and offshoring decisions  |
| Authors: | | Díez, Federico J. |
| Issue Date: | | 2010 |
| Series/Report no.: | | Working paper series // Federal Reserve Bank of Boston 10-4 |
| Abstract: | | This paper studies the effects of tariffs on intra-firm trade. Building on the Antràs and Helpman (2004) North-South theoretical framework, I show that higher Northern tariffs reduce the incentives for outsourcing and offshoring, while higher Southern tariffs have the opposite effects. I also show that increased offshoring and outsourcing imply an increase in the ratio of Northern intra-firm imports to total imports, which is an empirically testable prediction. Using a highly disaggregated dataset of U.S. (the North) imports and relevant tariffs, I find robust evidence to support the model´s predictions. |
| Subjects: | | Intra-firm trade offshoring outsourcing tariffs |
| JEL: | | F10 F23 L22 L23 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Working Paper Series, Federal Reserve Bank of Boston
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