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country of origin and distinguish between firm-level outsourcing of final versus intermediate goods. Results indicate that … China is different from both other low-wage and OECD countries. Industry-level import competition and firm-level outsourcing … Belgian firm survival, while firm-level outsourcing of finished goods to China even increased firm's probability of survival …
Persistent link: https://www.econbiz.de/10008854491
influence the demand for outsourcing. We show that outsourcing becomes more beneficial to the firm when technology is changing … expensive than outsourcing. The model therefore provides an explanation for the recent increases in outsourcing that have taken … model, namely, that all other things equal, the demand for outsourcing increases with the probability of technological …
Persistent link: https://www.econbiz.de/10005114472
In this paper we argue that an important source of the recent increase in outsourcing is the computer and information … technological change increases outsourcing because it allows firms to use services based on leading edge technologies without … outsourcing costs of IT-based services generating a positive correlation between the IT level of the user and its outsourcing …
Persistent link: https://www.econbiz.de/10005789029
This Paper analyses the welfare benefits from falling relative prices of IT (Information Technology) goods across a wide range of countries. Using two separate methodologies and datasets, we find that welfare benefits mainly accrue to users of IT, not their producers, because of falling relative...
Persistent link: https://www.econbiz.de/10005124148
We study and endogenous growth model where a profit-motivated R&D sector coexists with the introduction of free blueprints invented by philanthropists. These goods are priced at marginal cost, contrary to proprietary ones, which are produced by a monopoly owned by the inventor. We show that...
Persistent link: https://www.econbiz.de/10005662038
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
Since the mid-1980s a substantial body of research has taken shape on trade in services. Much of this is inspired by the WTO and regional trade agreements. However, an increasing number of papers focus on the impacts of unilateral services sector liberalization. The literature touches on...
Persistent link: https://www.econbiz.de/10008502579
The paper investigates the relationship between offshoring, wages, and the ease with which individuals' tasks can be offshored. Our analysis relates to recent theoretical contributions arguing that there is only a loose relationship between the suitability of a task for offshoring and the...
Persistent link: https://www.econbiz.de/10008468618