Resource title

Outsourcing and trade in a spatial world

Resource image

image for OpenScout resource :: Outsourcing and trade in a spatial world

Resource description

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.

Resource author

Hartmut Egger, Peter Egger

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/18712

Resource license

Adapt according to the presented license agreement and reference the original author.