DP6965 Organizations and Trade

Author(s): Pol AntrĂ s, Esteban Rossi-Hansberg
Publication Date: September 2008
Keyword(s): comparative advantage, contractual frictions, fragmentation, internalization, matching, offshoring, organizations, outsourcing, technology, wage inequality
JEL(s): D23, E25, F10, F23, L23
Programme Areas: Industrial Organization, International Trade and Regional Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=6965

We survey an emerging literature at the intersection of organizational economics and international trade. We argue that a proper modelling of the organizational aspects of production provides valuable insights on the aggregate workings of the world economy. In reviewing the literature, we describe certain predictions of standard models that are affected or even overturned when organizational decisions are brought into the analysis. We also suggest potentially fruitful areas for future research.