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We construct a model of offshoring with externalities and firm heterogeneity. Due to the presence of externalities …, temporary shocks like the Y2K problem can have permanent effects, i.e., they can permanently raise the extent of offshoring in … an industry. Also, the initial advantage of a country as a potential host for outsourcing activities can create a lock in …
Persistent link: https://www.econbiz.de/10005703445
We develop a theory of a firm in an environment with incomplete contracts. The firm’s headquarter decides on the complexity, the organization, and the global scale of its production process. Specifically, it decides: i) on the mass of symmetric intermediate inputs that are part of the value...
Persistent link: https://www.econbiz.de/10008693834
This paper examines the relationship between outsourcing and various aspects of employee well-being by devoting special … offshoring involves job destruction, especially when the destination is a low-wage country. In such circumstances, staying … employees' job satisfaction is reduced. However, the relationship between outsourcing and employee well-being is not entirely …
Persistent link: https://www.econbiz.de/10010884090
offshoring (integration) and sourcing strategies and (4) location of firms and labor markets. Second, we overview existing …
Persistent link: https://www.econbiz.de/10008777153
We construct a model of offshoring with externalities and firm heterogeneity. Due to the presence of externalities …, temporary shocks like the Y2K problem can have permanent effects, i.e., they can permanently raise the extent of offshoring in … an industry. Also, the initial advantage of a country as a potential host for outsourcing activities can create a lock in …
Persistent link: https://www.econbiz.de/10012466954
outsourcing decisions are affected by changes in country and competitor costs. A number of interesting regularities emerge. When a … developed countries. In many cases, the measured responses to cost changes appear to correspond with outsourcing theories that …
Persistent link: https://www.econbiz.de/10012467994
The paper investigates the relationship between offshoring, wages, and the ease with which individuals' tasks can be … suitability of a task for offshoring and the associated skill level. Accordingly, wage effects of offshoring can be very … on offshoring. Our main results suggest that in partial equilibrium, wage effects of offshoring are fairly modest but far …
Persistent link: https://www.econbiz.de/10008529132
). It turns out that, compared to non-offshoring firms, firms that relocated activities were larger and more productive, and … relocate, and this points to self-selection of "better" firms into offshoring. This finding is in line with results from recent … others were not. Broadly in line with hypotheses derived from the literature there is no evidence that offshoring has a …
Persistent link: https://www.econbiz.de/10008514860
Multinational firms (MNEs) accounted for 42 percent of US manufacturing employment, 87 percent of US imports, and 84 of US exports in 2007. Despite their disproportionate share of global trade, MNEs' input sourcing and final-good production decisions are often studied separately. Using newly...
Persistent link: https://www.econbiz.de/10013388806
We investigate the long-term effects of export opportunities to a large destination market on multinational affiliates and domestic firms in a low-income host country. The US-Vietnam Bilateral Trade Agreement reduced US import tariffs on exports from Vietnam. Tariff reductions led to entry of...
Persistent link: https://www.econbiz.de/10013477221