SMU SOE Seminar (May 17, 2022): Heterogeneous Globalization: Offshoring and Reorganization

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ABSTRACT This paper exploits a unique offshoring survey to show that firms continue domestic production of the same goods they offshore to low-wage countries. This shift towards “produced-good imports” coincides with a reallocation of labor from physical production to innovation and technology occupations, and an increase in domestically-produced varieties' unit values. These responses suggest an additional, firm-level benefit of trade liberalization: the opportunity to offshore production of low-quality varieties, thereby freeing up domestic resources for the development, production, and marketing of higher-quality varieties. Firms’ reactions also motivate a new offshoring measure – produced- good imports – that is readily observed in most firm-level datasets. Click here to view the paper. Click here to view the CV.
		PRESENTER Frederic Warzynski Aarhus University
		RESEARCH FIELDS Trade
		DATE: 17 May 2022 (Tuesday)
		TIME: 9am - 10.30am
		VENUE: Meeting Room 5.1, Level 5 School of Economics Singapore Management University 90 Stamford Road Singapore 178903