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Erscheinungsjahr: 
2001
Schriftenreihe/Nr.: 
WIFO Working Papers No. 144
Verlag: 
Austrian Institute of Economic Research (WIFO), Vienna
Zusammenfassung: 
This paper attempts to quantify the impact of fragmentation on employment. Factor demand functions for labour and intermediates and mark up price equations derived from a Generalized Leontief cost function at industry level are estimated. Import prices and output prices influence the price of intermediates via a technology matrix from input - output tables. A decrease in import prices (real trade costs) has a twofold impact on labour demand: (i) substitution of domestic employment by partly imported intermediates (= outsourcing or fragmentation) (ii) increased employment due to higher demand caused by an increase in price competitiveness.
Schlagwörter: 
fragmentation
outsourcing
real trade costs
Generalized Leontief cost functions
JEL: 
F11
F15
D20
Dokumentart: 
Working Paper

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