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Non-contractible quality dimensions are at risk of degradation when the provision of public services is privatized. However, privatization may increase quality by fostering performance-improving innovation, particularly if combined with increased competition. We assemble a large data set on...
Persistent link: https://www.econbiz.de/10011084097
I survey the influence of Grossman and Hart's (1986) seminal paper in the field of International Trade. I discuss the implementation of the theory in open-economy environments and its implications for the international organization of production and the structure of international trade flows. I...
Persistent link: https://www.econbiz.de/10009320400
We analyze a firm that produces a final good from multiple intermediates that can each be sourced domestically or from a low-wage country. The model explicitly incorporates that sourcing decisions of intermediates are interdependent. Equilibrium predictions depend crucially on a key modeling...
Persistent link: https://www.econbiz.de/10009324256
We investigate the roles of productivity and the specificity of inputs for the international sourcing strategy of firms which are part of a multinational network. We present a framework in which firms decide to import from a foreign independent supplier or from their related party abroad...
Persistent link: https://www.econbiz.de/10009365648
, which affects the behaviour of agents inside the corporation. This way, trade integration leads to waves of outsourcing and …
Persistent link: https://www.econbiz.de/10005662173
Trade in business services has been attracting attention from academic researchers, policy makers, and business journalists. While there are many anecdotes, there has been little in the way of formal theory applied to this issue. In this paper, we adapt a general model of fragmentation of...
Persistent link: https://www.econbiz.de/10005662176
Outsourcing of labour intensive activities challenges the welfare state and undermines the protection of low …
Persistent link: https://www.econbiz.de/10005662250
prevalence of outsourcing and foreign direct investment. …
Persistent link: https://www.econbiz.de/10005666433
We study the determinants of the location of sub-contracted activity in a general equilibrium model of outsourcing and … trade. We model outsourcing as an activity that requires search for a partner and relationship-specific investments that are … governed by incomplete contracts. The extent of international outsourcing depends inter alia on the thickness of the domestic …
Persistent link: https://www.econbiz.de/10005666820
Trade theory consists of a portfolio of models. What elements might be useful in modeling the offshoring of white-collar services, or do these issues call for an entirely fresh approach? I try to identifying some of the important aspects of this phenomenon and then argue that modeling could...
Persistent link: https://www.econbiz.de/10005667130