integration to changes in other relevant plant characteristics. We show that increases in outsourcing of services are positively …

We develop a theory of outsourcing in which there is market power in one factor market (labor) and no market power in a … show there is always outsourcing in the market allocation when a friction limiting outsourcing is not too big. The key … equilibria that vary in the degree of outsourcing. Across these equilibria, wages are lower the greater the degree of outsourcing …

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 …

International outsourcing to lower cost countries such as China and India can best be understood through the enrichment … insights into the forces driving international outsourcing. The paper focuses on relationship-specific investment, incomplete … contracts, and also search and matching, as fundamental concepts that explain outsourcing decisions …

We study the determinants of the extent of outsourcing and of direct foreign investment in an industry in which …

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 …

sourcing locations, and leads to non-monotonic responses in third markets to bilateral trade cost changes …