Outsourcing Economics has a double meaning. First, it is a book about the economics of outsourcing. Second, it examines the way that economists have understood globalization as a pure market phenomenon, and as a result have 'outsourced' the explanation of world economic forces to other disciplines. Markets are embedded in a set of institutions - labor, government, corporate, civil society, and household - that mold the power asymmetries that influence the distribution of the gains from globalization. In this book, William Milberg and Deborah Winkler propose an institutional theory of trade and development starting with the growth of global value chains - international networks of production that have restructured the global economy and its governance over the past twenty-five years. They find that offshoring leads to greater economic insecurity in industrialized countries that lack institutions supporting workers. They also find that offshoring allows firms to reduce domestic investment and focus on finance and short-run stock movements.is premised on a distinction between economic vulnerability and economic insecurity. ... spectrum of the advanced industrialized world, and although all have expanded their exposure to international trade and investment in ... In the econometric analysis presented in Section 5.4, we first estimate the effect of offshoring on employment for the United States between 1998 and 2006. Second , we estimate the impact of offshoring on the labor share in the United States for the same period.
|Author||:||William Milberg, Deborah Winkler|
|Publisher||:||Cambridge University Press - 2013-04-29|