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International Economics Commons

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Full-Text Articles in International Economics

'The Determinants Of Outward Processing Exports In The European Union' , Brighton: Ids, Dirk Willenbockel, Dimitra Petropoulou Jan 2013

'The Determinants Of Outward Processing Exports In The European Union' , Brighton: Ids, Dirk Willenbockel, Dimitra Petropoulou

Dr Xavier Cirera

This paper analyses the determinants of outward processing (OP) trade; specifically, imports of intermediates subsequent to processing abroad. A model where firms choose between OP and importing intermediates directly from a third country (generic offshoring, GO) predicts higher tariffs, lower monitoring costs and higher quality make OP more likely, while better institutions and rule of law abroad lower contractual breakdown risk under GO making OP less likely. Analysis of EU trade data from 2002 to 2008 emphasizes proximity, quality differentiation and weaker rule of law as OP determinants. Results suggest relationship-specific investments and monitoring under OP may offset contractual uncertainty.


What Is The Evidence Of The Impact Of Tariff Reductions On Employment And Fiscal Revenue In Developing Countries?, Xavier Cirera, Dirk Willenbockel, Rajith Lakshman Jan 2011

What Is The Evidence Of The Impact Of Tariff Reductions On Employment And Fiscal Revenue In Developing Countries?, Xavier Cirera, Dirk Willenbockel, Rajith Lakshman

Dr Xavier Cirera

No abstract provided.