摘要:A simple model of offshoring is used to integrate the complex gallery of results
that exist in the theoretical offshoring/fragmentation literature. The paper
depicts offshoring as ‘shadow migration’ and shows that this allows
straightforward derivation of the general equilibrium effects on prices, wages,
production and trade (necessary and sufficient conditions are provided). We show
that offshoring requires modification of the four HO theorems, so
econometricians who ignore offshoring might reject the HO theorem when a
properly specified version held in the data. We also show that offshoring is an
independent source of comparative advantage and can lead to intra-industry trade
in a Walrasian setting.