Outsourcing and Pass-Through: Evidence from OAP Prices
نویسنده
چکیده
This paper studies the extent and variation in import price pass-through for U.S. outsourcing imports. Based on data from 4,676 outsourcing products imported between 1991 and 2000 an average pass-through rate of seventy-five percent is found. The data also show that outsourcing import prices are influenced by the prices chosen by competing import suppliers. Notably, both the rate of pass-through and the degree of price emulation varies substantially across country assembly locations, with larger responses appearing for outsourcing imports assembled in high-education countries. JEL Code: F1 Trade, F2 International Factor Movements
منابع مشابه
The Nature of Outsourcing Relationships: Evidence from OAP Prices
This paper studies the extent and variation in production cost pass-through for U.S. outsourcing imports. Data from 4,676 products imported through the U.S. overseas assembly program (OAP) show that outsourcing imports were characterized by incomplete pass-through of production and trade costs to import prices. Notably, passthrough was higher for products assembled in high education countries w...
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