Recent article in Vox asks if experts need to break new ground or go back to basics to grasp concept.
Professor Richard Baldwin, Institute Professor of International Economics, authored an article published on VoxEU.org on 23 April 2010 which argues that a new analytical framework is not needed to understand offshoring – it can be explained by traditional trade theory, he explains.
In his column, which explores one of the most controversial aspects of globalisation, Professor Baldwin begins by refuting the theory that globalisation is nothing new and demonstrates that all of the steps in the global supply chain are interconnected to form the larger whole of what is modern international trade. He explains that this “trade as a package” view of international commerce – which is old-hat among trade policymakers – is making new inroads into academic circles.
Professor Baldwin provides outlines of ideas elaborated upon in his recently published paper co-authored with Robert Nicoud. He mentions in particular his theory on how offshoring and trade in goods fit together logically and goes on to give brief descriptions of some of the most influential ideas put forth in recent history and cites several important works that discuss globalisation and offshoring.
The article includes analyses of wage and trade implications, technological factors and discusses how Professor Baldwin’s work applies standard trade theories to offshoring by viewing offshoring as “shadow migration”. In conclusion the article aims to describe a methodology that can be used to weigh the pros and cons of offshoring.
Find out more on Professor Baldwin’s analysis of offshoring by reading the article on the VoxEU.org website.
In addition to his position as Professor at the Institute, Richard Baldwin is co-Director of its Centre for Trade and Economic Integration, founder and Editor-in-Chief of VoxEU.org, Policy Director at the Centre for Economic Policy Research, and an elected Member of the Council of the European Economic Association.