Trade-in-goods and trade-in-tasks: An Integrating Framework

By Richard E. Baldwin, Frédéric Robert-Nicoud. 2010

334 citations recorded by the source corpus.

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.

View Paper: https://www.semanticscholar.org/paper/b7018adaea67ef25ca65b26c6bf8f2c90539dd6e

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Citations in the corpus

• Offshoring and Labor Markets (2018, background): “This leads to an expansion in that sector, and this between-industry movement increases demand for unskilled labor and 14 Recent theoretical extensions of Grossman and Rossi-Hansberg (2008) include Baldwin and Robert-Nicoud (2014) and Benz (2012).”
• Offshoring and Directed Technical Change (2015, unknown): “Substituting for πh from (14) and using (3), (4), (11), (13) and (22) yields:”
• Functional specialisation in trade (2018, background): “These models feature trade in final goods and await further development of models that feature trade in tasks as well (Baldwin and Robert-Nicoud, 2014; Antràs and de Gortari, 2017).”
• Does vertical specialisation increase productivity? (2017, unknown): “…division of labor, which is isomorphic to factor-augmenting technical change (Grossman and Rossi-Hansberg 2007), as well as from increased competition, greater diversity in input varieties, learning externalities and technology spillovers (Li and Liu 2012; Baldwin and Robert-Nicoud 2014).”