WebDec 13, 2006 · Better contracting institutions in the South raise the prevalence of offshoring, but may reduce the relative prevalence of FDI or foreign outsourcing. The impact on the … WebJan 14, 2016 · Pol Antràs examines the contractual frictions that arise in the international system of production and how these frictions influence the world economy. Antràs discusses the inevitable complications that develop in contract negotiation and execution.

Deep Trade Agreements and Vertical FDI

WebAs is discussed in the literature on contract theory (e.g., Antràs, 2003, in the international trade context), an incomplete contract environment tends to deter trans-actions with unrelated parties. This argument suggests that aliates and parents are actively engaged in intrarm trade especially in industries susceptible to contractual frictions. WebMar 6, 2024 · – Contractual frictions of sale at a distance (Avner Grief’s ‘Fundamental Problem of Exchange’) seem potentially severe. – One often hears the argument that a fundamental problem in developing countries is their ‘sclerotic infrastructure’ (ie ports, roads, etc). Economist article on traveling with a truck driver in Cameroon. crocs houston tx

Global Production: Firms, Contracts, and Trade Structure by Pol …

WebNov 15, 2024 · Secondly, it allows us to focus on a specific mechanism, in our case, the reduction in contractual frictions, through which the examined variables are related. As an empirical measure of an industry's vulnerability to contractual frictions, we use Nunn 's industry contract-intensity measure (2007). The index classifies products to the extent ... WebContractual Frictions and Global Sourcing ∗ Pol Antràs and Elhanan Helpman Department of Economics, Harvard University November 22, 2006 Abstract We generalize the Antràs … WebContractual frictions arise because, in the face-to-face meeting between and employer and an unemployed worker, an assortment of informational and legal impediments may … crocs huara swedge sandals ladies