The rise of offshoring: it's not wine for cloth anymore

In 1817, when David Ricardo penned his celebrated treatise on The Principles of Political Economy and Taxation, communication between England and Portugal was no faster and only slightly less costly than shipping wine or cloth from one country to the other. Most goods were produced in a single location, as fragmentation of the production process was uneconomic in a world in which the coordination of production activities in remote locations was difficult if not impossible. No wonder Ricardo illustrated his principle of comparative advantage with an example involving the exchange of one good for another.

[1]  William G. Vanderbok.  The World is Flat: A Brief History of the Twenty-First Century , 2005 .

[2]  Gene M. Grossman,et al.  Managerial Incentives and the International Organization of Production , 2004 .

[3]  David E. Weinstein,et al.  An Account of Global Factor Trade , 1998 .

[4]  Daniel Trefler,et al.  The Case of the Missing Trade and Other Mysteries , 2002 .

[5]  A. Krueger.  How Computers Have Changed the Wage Structure: Evidence from Microdata, 1984-1989 , 1991 .

[6]  Rudiger Dornbusch,et al.  Money, Capital Mobility, and Trade : Essays in Honor of Robert A. Mundell , 2001 .

[7]  J. Hunt,et al.  The Impact of the 1962 Repatriates from Algeria on the French Labor Market , 1992 .

[8]  D. Acemoglu.  Technical Change, Inequality, and the Labor Market , 2000 .

[9]  Lawrence F. Katz,et al.  Computing Inequality: Have Computers Changed the Labor Market? , 1997 .

[10]  D. Murphey,et al.  The World Is Flat: A Brief History of the Twenty-First Century , 2006 .

[11]  Rachel M. Friedberg.  The Impact of Mass Migration on the Israeli Labor Market , 2001 .

[12]  Stephen Nickell,et al.  How does financial pressure affect firms , 1995 .

[13]  J. Neary,et al.  Short-Run Capital Specificity and the Pure Theory of International Trade , 1978 .

[14]  Robert C. Feenstra,et al.  The Impact of Outsourcing and High-Technology Capital on Wages: Estimates For the United States, 1979–1990 , 1999 .

[15]  Richard J. Murnane,et al.  The New Division of Labor: How Computers Are Creating the Next Job Market , 2004 .

[16]  T. Srinivasan,et al.  Journal of Economic Perspectives—Volume 18, Number 4—Fall 2004—Pages 93–114 The Muddles over Outsourcing , 2022 .

[17]  Richard J. Murnane,et al.  The New Division of Labor , 2004 .

[18]  Henryk Kierzkowski,et al.  Globalization and the consequences of international fragmentation , 2001 .

[19]  David Hummels,et al.  Trade Responses to Geographic Frictions: A Decomposition Using Micro-Data , 2005 .

[20]  David Card.  The Impact of the Mariel Boatlift on the Miami Labor Market , 1989 .

[21]  Jesse C. Robertson,et al.  Offshore Outsourcing of Tax-Return Preparation , 2005 .

[22]  Edward E. Leamer,et al.  A Flat World, a Level Playing Field, a Small World After All, or None of the Above? A Review of Thomas L Friedman's The World is Flat , 2007 .

[23]  D. Ricardo.  On the Principles of Political Economy and Taxation , 1891 .

[24]  Daniel E. Sichel,et al.  Measuring Capital and Technology: An Expanded Framework , 2004 .

[25]  L. Mosley,et al.  The World Is Flat: A Brief History of the Twenty-First Century , 2005 .

[26]  Elhanan Helpman,et al.  Global Sourcing , 2003, Journal of Political Economy.

[27]  A. Blinder.  Offshoring: The Next Industrial Revolution? , 2006 .

[28]  David Card,et al.  Is the New Immigration Really so Bad? , 2004, SSRN Electronic Journal.

[29]  Paul A. Samuelson,et al.  Where Ricardo and Mill Rebut and Confirm Arguments of Mainstream Economists Supporting Globalization , 2004 .

[30]  P. Schmidt,et al.  Limited-Dependent and Qualitative Variables in Econometrics. , 1984 .

[31]  D. McFadden.  Conditional logit analysis of qualitative choice behavior , 1972 .

[32]  Per Krusell,et al.  The Effects of Technical Change on Labor Market Inequalities , 2004 .

[33]  Gordon H. Hanson,et al.  Illegal Migration from Mexico to the United States , 2006 .

[34]  Elhanan Helpman,et al.  Managerial Incentives and the International Organization of Production , 2002 .

[35]  G. DeFriese.  From the New York Times— , 1933, North Carolina medical journal.

[36]  Ronald W. Jones,et al.  The Structure of Simple General Equilibrium Models , 1965, Journal of Political Economy.

[37]  Edward E. Leamer,et al.  The Economic Geography of the Internet Age , 2001 .

[38]  P. Samuelson,et al.  Protection and Real Wages , 1941 .

[39]  Uta Jüttner.  Supply chain risk management: Understanding the business requirements from a practitioner perspective , 2005 .

[40]  P. Dicken,et al.  Global production networks: realizing the potential , 2008 .

[41]  A. W. Coats,et al.  The Principles of Political Economy and Taxation. , 1935 .

[42]  Pol Antras,et al.  Firms, Contracts, and Trade Structure , 2003 .

[43]  David Hummels,et al.  The Nature and Growth of Vertical Specialization in World Trade , 1999 .

[44]  Pol Antràs,et al.  Grossman-Hart (1986) Goes Global: Incomplete Contracts, Property Rights, and the International Organization of Production , 2005 .

[45]  Wilhelm Kohler.  Aspects of International Fragmentation , 2003 .

[46]  N. Mankiw,et al.  The Politics and Economics of Offshore Outsourcing , 2006 .

[47]  Ari Goelman,et al.  Offshoring and Radiology , 2006 .

[48]  Lou Dobbs,et al.  Exporting America: Why Corporate Greed Is Shipping American Jobs Overseas , 2004 .