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Title: A Dynamic Model of Effects of Trade and Environmental Policies on Firms' Offshoring and Clean Technology Adoption Decisions

Citation Type: Conference Paper

Publication Year: 2016

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Abstract: This paper develops a dynamic general equilibrium model to analyze firms joint decisions on production offshoring and clean technology adoptions when facing different labor productivities and environmental regulations between home country and offshoring host country. During their decision processes, both workers wages and emission levels of related countries are endogenously determined. Later this model is calibrated to match the data on manufacturing workers wages in the U.S. and Chinas foreign invested enterprises and both countries PM2.5 emissions over 1999-2013. This paper quantifies the offshoring levels which is measured by the share of total low-skilled labor-intensive manufacturing production processes shifted from U.S. to China. My paper also gives the long-run predictions on future offshoring level and environmental qualities in both countries. Besides, different counterfactual policy experiments are conducted and pollution haven effects on offshoring is estimated in this paper.

Url: http://ageconsearch.umn.edu/bitstream/236064/2/AAEA Draft_1v_05252016.pdf

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Authors: Meng, Xianwei; Wei, Xuan

Conference Name: 2016 Agricultural & Applied Economics Association Annual Meeting

Publisher Location: Boston, Massachusetts

Data Collections: IPUMS CPS

Topics: Aging and Retirement, Other

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