Template-Type: ReDIF-Paper 1.0
Author-Name: Robert Feenstra
Author-Name-First: Robert
Author-Name-Last: Feenstra
Author-Name: Gordon H. Hanson
Author-Name-First: Gordon H.
Author-Name-Last: Hanson
Author-Name: Deborah Swenson
Author-Name-First: Deborah
Author-Name-Last: Swenson
Author-Workplace-Name: Department of Economics, University of California Davis
Title: OFFSHORE ASSEMBLY FROM THE UNITED STATES: PRODUCTION CHARACTERISTICS OF THE 9802 PROGRAM
Abstract: We study outsourcing from the United States under the offshore assembly program (OAP). Formerly called the 806/807 provision of the U.S. tariff code, and now renamed the 9802 provision of the Harmonized System code, this program allows U.S. firms to export component parts and have them assembled overseas. When the finished product is imported back into the United States, duties are paid only on the foreign value-added. We estimate the production characteristics of the U.S. OAP activity, and in particular, whether this activity is intensive in the use of non-production labor as compared to the overseas production. We also examine the sensitivity of OAP imports to real exchange rate movements.
Length: 51
File-URL: https://repec.dss.ucdavis.edu/files/UH7xxHgLMVfkf7uRkFcAgnUD/98-10.pdf
File-Format: application/pdf
Number: 322
Classification-JEL: 
KeyWords: 
Creation-Date: 20030108
Handle: RePEc:cda:wpaper:322