The School of Economics invites you to a HDR seminar presented by Edwin Jiang (University of Sydney). 

Shadow Offshoring and Complementarity in Product Space

Co-authors: 

Vladimir Tyazhelnikov (University of Sydney)

Abstract 

We develop a two-country quantitative model of international production of a complex good that consists of multiple parts. Production of those parts exhibit some degree of complementarity and consequently, decisions on production locations are interrelated. We use this model to generate a new measure of offshoring that, unlike conventional measures, accounts not only for total costs of parts produced abroad but also for what parts are produced there and how similar these parts are between each other.