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Autor:innen: 
Erscheinungsjahr: 
2007
Schriftenreihe/Nr.: 
CESifo Working Paper No. 1932
Verlag: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Zusammenfassung: 
Germany exhibits a strong reduction in domestic manufacturing production depth (bazaar effect). I argue that this reflects an unbundling of comparative advantage. Using a model where Ricardian plus Heckscher-Ohlin-type comparative advantage relates to fragments of production, I compare a trading equilibrium where all fragments are located within a country with an equilibrium where input sub-bundles may be traded (offshoring). The model allows for several goods and two fragments, produced with high-skilled and low-skilled labor. I address wage and welfare effects under flexible wages, and under a minimum wage. I also explore trade policy implications and compare offshoring to migration.
Schlagwörter: 
comparative advantage
offshoring
outsourcing
globalization
migration
JEL: 
F11
F16
F22
Dokumentart: 
Working Paper
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