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To assess historical measures of foreign outsourcing and evaluate the impact of global production fragmentation on domestic labor and trade policy.

Integration of Trade and Disintegration of Production in the Global Economy

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To assess historical measures of foreign outsourcing and evaluate the impact of global production fragmentation on domestic labor and trade policy.
Compared multiple quantitative measures of foreign outsourcing and intermediate goods trade from the 1970s forward.
Evaluated the relationship between international trade integration, domestic labor market trends, and regulatory labor standards.
All examined measures show foreign outsourcing and the geographic dispersion of manufacturing components have consistently increased since the 1970s.
Production disintegration across borders corresponds with adverse employment shifts and wage stagnation for low-skilled domestic workers.

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Economic review reveals rising foreign outsourcing across global markets, indicating downward wage pressures on low-skilled domestic labor.

Robert C. Feenstra (1998) studied this question.

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Economic review reveals rising foreign outsourcing across global markets, indicating downward wage pressures on low-skilled domestic labor.