Working Paper: NBER ID: w15882
Authors: Richard Baldwin; Frédéric Robert-Nicoud
Abstract: Our paper integrates results from trade-in-task theory into mainstream trade theory by developing trade-in-task analogues to the four famous theorems (Heckscher-Ohlin, factor price equalisation, Stolper-Samuelson, and Rybczynski) and showing the standard gains-from-trade theorem does not hold for trade-in-tasks. We show trade-in-tasks creates intraindustry trade in a Walrasian economy, and derive necessary and sufficient conditions for analyzing the impact of trade-in-tasks on wages and production. Extensions of the integrating framework easily accommodate monopolistic competition and two-way offshoring/trade-in-tasks.
Keywords: Trade in Tasks; Offshoring; Trade Theory; Heckscher-Ohlin Model
JEL Codes: F11; F12; F16
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| trade in tasks (F16) | intra-industry trade (F14) |
| trade in tasks (F16) | wages (J31) |
| trade in tasks (F16) | prices (P22) |
| trade in tasks (F16) | output (C67) |
| trade in tasks (F16) | gains from trade (F11) |
| trade in tasks (F16) | effective factor price divergence (F16) |
| trade in tasks (F16) | ambiguous gains from trade (F14) |