Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/79229
Authors: 
Frensch, Richard
Hanousek, Jan
Koécenda, Evézen
Year of Publication: 
2012
Series/Report no.: 
IOS Working Papers 321
Abstract: 
Research for evidence on offshoring activities and its driving forces has been done by analyzing gross trade flows related to offshoring using gravity equations augmented by ad hoc measures of supply-side country differences. We develop a specification grounded in incomplete specialization that views bilateral gravity equations as statistical relationships constrained on countries' multilateral specialization patterns. We apply this approach to an empirical analysis of the European trade in parts and components. Our results bring evidence that bilateral trade related to offshoring activities across Europe is driven by countries' multilateral specialization incentives that are expressed by specific supply-side country differences relative to the rest of the world.
Subjects: 
International trade
gravity model
offshoring
panel data
European Union
JEL: 
F14
F16
L24
Document Type: 
Working Paper

Files in This Item:
File
Size
330.78 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.