Working Paper: CEPR ID: DP4129
Authors: Dalia Marin; Thierry Verdier
Abstract: Globalization has been identified by many experts as a new way firms organize their activities and also as the emergence of talent as the new stakeholder in the firm. This Paper examines the role of trade integration for the changing nature of the corporation. International trade leads to a ?war for talent?, which makes it more likely that an organizational equilibrium emerges in the integrated world economy in which control is delegated to lower levels of the firms? hierarchy empowering human capital. Furthermore, trade integration is shown to lead to waves of outsourcing and to convergence in corporate cultures across countries.
Keywords: international trade; endogenous organizations; Rybczynski theorem; human capital; theory of the firm
JEL Codes: D23; F12; F14; L22
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| trade integration (F15) | organizational structure (L22) |
| trade integration (F15) | war for talent (J45) |
| war for talent (J45) | empowerment of human capital (J24) |
| trade integration (F15) | demand for skilled labor (J24) |
| demand for skilled labor (J24) | empowerment of human capital (J24) |
| trade integration (F15) | skill-intensive organizational structures (L23) |