The Elasticity of Substitution and the Sector Bias of International Outsourcing

<table class="table-group" id="tab1"><tr><td><table class="table"><tr><td class="thead-hr" colspan="5"><hr/></td></tr><tr class="thead"><td align="left" rowspan="2"> Scenario</td><td align="center" colspan="2"> Low-skill intensive Industry</td><td align="center" colspan="2"> High-skill intensive Industry</td></tr><tr class="thead"><td align="center"> Low-skill part</td><td align="center"> High-skill part</td><td align="center">Low-skill part</td><td align="center"> High-skill part </td></tr><tr><td class="thead-hr" colspan="5"><hr/></td></tr><tr><td align="left">Relative wages of the high-skilled</td><td align="center"><span style="width: 12.45px;"><svg height="12.9125" id="M2" style="vertical-align:-1.95624pt" version="1.1" viewbox="0 0 12.45 12.9125" width="12.45" xmlns="http://www.w3.org/2000/svg">
<g transform="matrix(1.25,0,0,-1.25,0,12.9125)">
<g transform="translate(72,-61.67)">
<text transform="matrix(1,0,0,-1,-71.95,63.67)">
<tspan style="font-size: 12.50px; " x="0" y="0">↓</tspan>
</text>
</g>
</g>
</svg></span></td><td align="center"><span style="width: 12.45px;"><svg height="12.9125" id="M3" style="vertical-align:-1.95624pt" version="1.1" viewbox="0 0 12.45 12.9125" width="12.45" xmlns="http://www.w3.org/2000/svg">
<g transform="matrix(1.25,0,0,-1.25,0,12.9125)">
<g transform="translate(72,-61.67)">
<text transform="matrix(1,0,0,-1,-71.95,63.67)">
<tspan style="font-size: 12.50px; " x="0" y="0">↓</tspan>
</text>
</g>
</g>
</svg></span></td><td align="center"><span style="width: 12.45px;"><svg height="12.9125" id="M4" style="vertical-align:-1.95624pt" version="1.1" viewbox="0 0 12.45 12.9125" width="12.45" xmlns="http://www.w3.org/2000/svg">
<g transform="matrix(1.25,0,0,-1.25,0,12.9125)">
<g transform="translate(72,-61.67)">
<text transform="matrix(1,0,0,-1,-71.95,63.67)">
<tspan style="font-size: 12.50px; " x="0" y="0">↑</tspan>
</text>
</g>
</g>
</svg></span></td><td align="center"><span style="width: 12.45px;"><svg height="12.9125" id="M5" style="vertical-align:-1.95624pt" version="1.1" viewbox="0 0 12.45 12.9125" width="12.45" xmlns="http://www.w3.org/2000/svg">
<g transform="matrix(1.25,0,0,-1.25,0,12.9125)">
<g transform="translate(72,-61.67)">
<text transform="matrix(1,0,0,-1,-71.95,63.67)">
<tspan style="font-size: 12.50px; " x="0" y="0">↑</tspan>
</text>
</g>
</g>
</svg></span></td></tr><tr><td align="left">Relative labor unit requirements of the high-skilled</td><td align="center"><span style="width: 12.45px;"><svg height="12.9125" id="M6" style="vertical-align:-1.95624pt" version="1.1" viewbox="0 0 12.45 12.9125" width="12.45" xmlns="http://www.w3.org/2000/svg">
<g transform="matrix(1.25,0,0,-1.25,0,12.9125)">
<g transform="translate(72,-61.67)">
<text transform="matrix(1,0,0,-1,-71.95,63.67)">
<tspan style="font-size: 12.50px; " x="0" y="0">↑</tspan>
</text>
</g>
</g>
</svg></span></td><td align="center"><b>?</b></td><td align="center"><b>?</b></td><td align="center"><span style="width: 12.45px;"><svg height="12.9125" id="M7" style="vertical-align:-1.95624pt" version="1.1" viewbox="0 0 12.45 12.9125" width="12.45" xmlns="http://www.w3.org/2000/svg">
<g transform="matrix(1.25,0,0,-1.25,0,12.9125)">
<g transform="translate(72,-61.67)">
<text transform="matrix(1,0,0,-1,-71.95,63.67)">
<tspan style="font-size: 12.50px; " x="0" y="0">↓</tspan>
</text>
</g>
</g>
</svg></span></td></tr><tr><td align="left" rowspan="2">Output</td><td align="center">High-skill intensive Industry <svg height="12.9125" id="M8" style="vertical-align:-1.95624pt" version="1.1" viewbox="0 0 12.45 12.9125" width="12.45" xmlns="http://www.w3.org/2000/svg">
<g transform="matrix(1.25,0,0,-1.25,0,12.9125)">
<g transform="translate(72,-61.67)">
<text transform="matrix(1,0,0,-1,-71.95,63.67)">
<tspan style="font-size: 12.50px; " x="0" y="0">↓</tspan>
</text>
</g>
</g>
</svg></td><td align="center" rowspan="2"><b>?</b></td><td align="center" rowspan="2"><b>?</b></td><td align="center">High-skill intensive Industry <svg height="12.9125" id="M9" style="vertical-align:-1.95624pt" version="1.1" viewbox="0 0 12.45 12.9125" width="12.45" xmlns="http://www.w3.org/2000/svg">
<g transform="matrix(1.25,0,0,-1.25,0,12.9125)">
<g transform="translate(72,-61.67)">
<text transform="matrix(1,0,0,-1,-71.95,63.67)">
<tspan style="font-size: 12.50px; " x="0" y="0">↑</tspan>
</text>
</g>
</g>
</svg></td></tr><tr><td align="center">Low-skill intensive Industry <svg height="12.9125" id="M10" style="vertical-align:-1.95624pt" version="1.1" viewbox="0 0 12.45 12.9125" width="12.45" xmlns="http://www.w3.org/2000/svg">
<g transform="matrix(1.25,0,0,-1.25,0,12.9125)">
<g transform="translate(72,-61.67)">
<text transform="matrix(1,0,0,-1,-71.95,63.67)">
<tspan style="font-size: 12.50px; " x="0" y="0">↑</tspan>
</text>
</g>
</g>
</svg></td><td align="center">Low-skill intensive Industry <svg height="12.9125" id="M11" style="vertical-align:-1.95624pt" version="1.1" viewbox="0 0 12.45 12.9125" width="12.45" xmlns="http://www.w3.org/2000/svg">
<g transform="matrix(1.25,0,0,-1.25,0,12.9125)">
<g transform="translate(72,-61.67)">
<text transform="matrix(1,0,0,-1,-71.95,63.67)">
<tspan style="font-size: 12.50px; " x="0" y="0">↓</tspan>
</text>
</g>
</g>
</svg></td></tr><tr><td align="left" rowspan="2">Employment</td><td align="center">High-skill intensive Industry <svg height="12.9125" id="M12" style="vertical-align:-1.95624pt" version="1.1" viewbox="0 0 12.45 12.9125" width="12.45" xmlns="http://www.w3.org/2000/svg">
<g transform="matrix(1.25,0,0,-1.25,0,12.9125)">
<g transform="translate(72,-61.67)">
<text transform="matrix(1,0,0,-1,-71.95,63.67)">
<tspan style="font-size: 12.50px; " x="0" y="0">↓</tspan>
</text>
</g>
</g>
</svg></td><td align="center" rowspan="2"><b>?</b></td><td align="center" rowspan="2"><b>?</b></td><td align="center">High-skill intensive Industry <svg height="12.9125" id="M13" style="vertical-align:-1.95624pt" version="1.1" viewbox="0 0 12.45 12.9125" width="12.45" xmlns="http://www.w3.org/2000/svg">
<g transform="matrix(1.25,0,0,-1.25,0,12.9125)">
<g transform="translate(72,-61.67)">
<text transform="matrix(1,0,0,-1,-71.95,63.67)">
<tspan style="font-size: 12.50px; " x="0" y="0">↑</tspan>
</text>
</g>
</g>
</svg></td></tr><tr><td align="center">Low-skill intensive Industry <svg height="12.9125" id="M14" style="vertical-align:-1.95624pt" version="1.1" viewbox="0 0 12.45 12.9125" width="12.45" xmlns="http://www.w3.org/2000/svg">
<g transform="matrix(1.25,0,0,-1.25,0,12.9125)">
<g transform="translate(72,-61.67)">
<text transform="matrix(1,0,0,-1,-71.95,63.67)">
<tspan style="font-size: 12.50px; " x="0" y="0">↑</tspan>
</text>
</g>
</g>
</svg></td><td align="center">Low-skill intensive Industry <svg height="12.9125" id="M15" style="vertical-align:-1.95624pt" version="1.1" viewbox="0 0 12.45 12.9125" width="12.45" xmlns="http://www.w3.org/2000/svg">
<g transform="matrix(1.25,0,0,-1.25,0,12.9125)">
<g transform="translate(72,-61.67)">
<text transform="matrix(1,0,0,-1,-71.95,63.67)">
<tspan style="font-size: 12.50px; " x="0" y="0">↓</tspan>
</text>
</g>
</g>
</svg></td></tr><tr class="table-tr"><td colspan="5"><hr class="tbody-hr"/></td></tr></table></td></tr></table>

Sector bias of international outsourcing (overview).

Economics Research International

tab1

Table 1

Table 1: The Elasticity of Substitution and the Sector Bias of International Outsourcing 