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Contribution Details

Type Journal Article
Scope Discipline-based scholarship
Title Cross-border sourcing and outward processing in EU manufacturing
Other Titles Cross border outsourcing: A general equilibrium perspective and evidence for outward processing in EU manufacturing
Organization Unit
Authors
  • H Egger
  • P Egger
Item Subtype Original Work
Refereed Yes
Status Published in final form
Language
  • English
Journal Title North American Journal of Economics and Finance
Publisher Elsevier
Geographical Reach international
ISSN 1062-9408
Volume 12
Number 3
Page Range 243 - 256
Date 2001
Abstract Text With the help of a standard 2 × 2 trade model, we develop several hypotheses on the effects of cross-border sourcing on skill intensity in production. The focus is on cross-border sourcing of low-skill-intensive components of exports and import-competing products. We test the aforementioned hypotheses with panel data for manufacturing in the European Union (EU). We find that outward processing is more prevalent in import-competing industries, which are also the EU’s relatively intensive users of low-skilled labor. Outward processing in export industries is found to reduce the skill-to-low-skill ratio in EU industries, while outward processing in import-competing industries has more ambiguous effects.
Digital Object Identifier 10.1016/S1062-9408(01)00054-7
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