Task Trade between Similar Countries

The authors propose a theory of task trade between countries that have similar relative factor endowments and technological capabilities but may differ in size. Firms produce differentiated goods by performing a continuum of tasks, each of which generates local spillovers. Tasks can be performed at...

Full description

Bibliographic Details
Main Author: Grossman, Gene M.
Other Authors: Rossi-Hansberg, Esteban
Format: eBook
Language:English
Published: Washington, D.C The World Bank 2011
Online Access:
Collection: World Bank E-Library Archive - Collection details see MPG.ReNa
LEADER 01535nmm a2200229 u 4500
001 EB002100231
003 EBX01000000000000001240321
005 00000000000000.0
007 cr|||||||||||||||||||||
008 221013 ||| eng
100 1 |a Grossman, Gene M. 
245 0 0 |a Task Trade between Similar Countries  |h Elektronische Ressource  |c Grossman, Gene M 
260 |a Washington, D.C  |b The World Bank  |c 2011 
300 |a 38 p 
700 1 |a Rossi-Hansberg, Esteban 
700 1 |a Grossman, Gene M. 
041 0 7 |a eng  |2 ISO 639-2 
989 |b WOBA  |a World Bank E-Library Archive 
028 5 0 |a 10.1596/1813-9450-5819 
856 4 0 |u http://elibrary.worldbank.org/doi/book/10.1596/1813-9450-5819  |x Verlag  |3 Volltext 
082 0 |a 330 
520 |a The authors propose a theory of task trade between countries that have similar relative factor endowments and technological capabilities but may differ in size. Firms produce differentiated goods by performing a continuum of tasks, each of which generates local spillovers. Tasks can be performed at home or abroad, but offshoring entails costs that vary by task. In equilibrium, the tasks with the highest offshoring costs may not be traded. Among the remainder, those with the relatively higher offshoring costs are performed in the country that has the higher wage and higher aggregate output. The paper discusses the relationship between equilibrium wages, equilibrium outputs, and relative country size and examines how the pattern of specialization reflects the key parameters of the model