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reduce the relative prevalence of FDI or foreign outsourcing. The impact on the composition of offshoring depends on whether … supplier locations, and then study the effects of changes in the quality of contractual institutions on the relative prevalence … of these organizational forms. Better contracting institutions in the South raise the prevalence of offshoring, but may …
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We develop an equilibrium model of industrial structure in which the organization of firms is endogenous. Differentiated consumer products can be produced either by vertically integrated firms or by pairs of specialized companies. Production of each variety of consumer good requires a unique,...
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Using the universe of large Canadian manufacturing firms in 1988 and 1996, we investigate to what extent outsourcing … outsourcing less likely; (ii) complementarities between the investments of the buyer and the seller are also associated with less … outsourcing; (iii) property rights predictions on the link between investment intensities and optimal ownership are only supported …
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Traditional explanations for indirect trade through an entrepot have focused on savings in transport costs and on the role of specialized agents in processing and distribution. We provide an alternative perspective based on the possibility that entrepots may facilitate tariff evasion. Using data...
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