Back to Search
Start Over
Offshoring, employment, and aggregate demand.
- Source :
- Journal of Evolutionary Economics; Jan2020, Vol. 30 Issue 1, p179-204, 26p, 1 Diagram, 1 Chart, 1 Graph
- Publication Year :
- 2020
-
Abstract
- The article uses a demand-constrained small-open-economy model in the tradition of Keynes and Kalecki to study the effects of offshoring on aggregate demand and domestic employment. Offshoring is represented as labor-saving import-using technical change. The results depend on the behavior of the markup on unit costs. If higher markups absorb the competitiveness gain, the scale effect of labor demand is negative, and offshoring unambiguously reduces domestic demand and employment. If the markup remains constant, the net effect of offshoring on domestic demand and employment is ambiguous; it depends crucially on the price elasticity of exports. [ABSTRACT FROM AUTHOR]
- Subjects :
- AGGREGATE demand
OFFSHORE outsourcing
LABOR demand
EMPLOYMENT
PRICE markup
Subjects
Details
- Language :
- English
- ISSN :
- 09369937
- Volume :
- 30
- Issue :
- 1
- Database :
- Complementary Index
- Journal :
- Journal of Evolutionary Economics
- Publication Type :
- Academic Journal
- Accession number :
- 142084058
- Full Text :
- https://doi.org/10.1007/s00191-018-0582-4