Multinational production and comparative advantage

Volume: 119, Pages: 1 - 54
Published: Jul 1, 2019
Abstract
This paper shows analytically and quantitatively how omitting the striking sectoral heterogeneity of multinational production (MP) and its relationship with countries' comparative advantage leads to understate the gains from MP and openness. By construction, one-sector models of trade and MP, ignore the conflicting effects that a reduction in MP frictions has on the sectoral dispersion of MP and trade shares. On the one hand, freer MP increases...
Paper Details
Title
Multinational production and comparative advantage
Published Date
Jul 1, 2019
Volume
119
Pages
1 - 54
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