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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/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
In this paper, we develop a simple model of international outsourcing and apply it to processing trade in China. We …
Persistent link: https://www.econbiz.de/10012468496
In recent decades, advances in information and communication technology and falling trade barriers have led firms to retain within their boundaries and in their domestic economies only a subset of their production stages. A key decision facing firms worldwide is the extent of control to exert...
Persistent link: https://www.econbiz.de/10012457087
U.S. manufacturing employment. Our findings suggest that offshoring by multinationals was a key driver of the observed …
Persistent link: https://www.econbiz.de/10012479773
This paper analyzes the impact on firm behavior of the Homeland Investment Act of 2004, which provided a one-time tax holiday for the repatriation of foreign earnings by U.S. multinationals. The analysis controls for endogeneity and omitted variable bias by using instruments that identify the...
Persistent link: https://www.econbiz.de/10012463626
This paper examines the relationship between the share of employment potentially affected by offshoring and economic … statistical association between the share of both "non-clerical" and clerical occupations potentially affected by offshoring and …
Persistent link: https://www.econbiz.de/10012465860
correspond to an increase in outsourcing by multinationals from the United States and other Northern countries, is to shift …
Persistent link: https://www.econbiz.de/10012473764
Estimating the causal effect of offshoring on domestic employment is difficult because of the inherent simultaneity of …. Underlying these results is substantial heterogeneity based on offshoring margin and firm organizational structure. For example …
Persistent link: https://www.econbiz.de/10012453767
Assessing the productivity gains from multinational production has been a vital topic of economic research. Positive aggregate productivity gains are often attributed to within-firm productivity improvement; however, an alternative, less emphasized explanation is between-firm selection and...
Persistent link: https://www.econbiz.de/10012460453