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000293946 005__ 20250213113257.0
000293946 0247_ $$2doi$$a10.1111/roie.12096
000293946 037__ $$aARTICLE
000293946 245__ $$aInternational trade, offshoring and heterogeneous firms
000293946 269__ $$a2014
000293946 336__ $$aJournal Articles
000293946 520__ $$aRecent trade models determine the equilibrium distribution of firm-level efficiency endogenously and show that freer trade shifts the distribution towards higher average productivity because of entry and exit of firms. These models ignore the possibility that freer trade also alters the firm-size distribution via international firm migration (offshoring); firms must, by assumption, produce in their “birth nation.”We show that when firms are allowed to switch locations, new productivity effects arise. Freer trade induces the most efficient small-nation firms to move to the large nation. The large country gets an “extra helping” of the most efficient firms while the small nation’s firm-size distribution is truncated on both ends. This reinforces the large-nation productivity gain while reducing or even reversing the small-nation productivity gain. The small nation is nevertheless better off allowing firm migration.
000293946 580__ $$aIn: Review of International Economics. - Volume 22(2014), no 1, pages 59-72
000293946 700__ $$aBaldwin, Richard E
000293946 700__ $$aOkubo, Toshihiro
000293946 8564_ $$99c4f9ecd-fc47-4dbc-bedd-8555ed29f935$$s192838$$uhttps://repository.graduateinstitute.ch/record/293946/files/RIE_Baldwin_2014.pdf
000293946 8564_ $$9867be3a6-5320-4841-98bc-d33b0be5affd$$xpdfa$$s1548345$$uhttps://repository.graduateinstitute.ch/record/293946/files/RIE_Baldwin_2014.pdf?subformat=pdfa
000293946 901__ $$uInternational Economics Department$$0319285
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000293946 937__ $$aARTICLE-2016-065
000293946 980__ $$aARTICLE