Showing 1 - 10 of 77
from a low-wage country. Offshoring an intermediate is only profitable when it has matured sufficiently and the savings in … for parts that are only exported later, consistent with offshoring becoming gradually more difficult. …
Persistent link: https://www.econbiz.de/10010931451
We develop a theory of a firm in an incomplete contracts environment which decides on the complexity, the organization, and the global scale of its production process. Specifically, the firm decides i) how many intermediate inputs are simultaneously combined to a final product, ii) if the...
Persistent link: https://www.econbiz.de/10010776980
–South theoretical framework, I show that higher Northern tariffs reduce the incentives for outsourcing and offshoring, while higher … Southern tariffs have the opposite effects. I also show that increased offshoring and outsourcing imply a decrease in the ratio …
Persistent link: https://www.econbiz.de/10011056320
domestic and foreign plants. To do so, we examine the first wave of light-truck offshoring to Mexico that occurred due to … and Mexico for the same models of light trucks. Using a new dataset that details the extent of offshoring and domestic … “inshoring” the more complex varieties while offshoring the less complex versions. …
Persistent link: https://www.econbiz.de/10011056315
Existing models of offshoring are not equipped to explain how global production sharing affects the volatility of … economic activity. This paper develops a trade model that can account for why offshoring industries in low wage countries such … States. We argue that a key to explaining this outcome is that the extensive margin of offshoring responds endogenously to …
Persistent link: https://www.econbiz.de/10010574406
Global production sharing is determined by international cost differences and frictions related to the costs of unbundling stages spatially. The interaction between these forces depends on engineering details of the production process with two extremes being ‘snakes’ and ‘spiders’....
Persistent link: https://www.econbiz.de/10010679147
This paper examines how nominal uncertainty affects the choice that firms face to serve a foreign market through exports or to produce abroad as a multinational. I develop a two-country, stochastic general equilibrium model in which firms make production and pricing decisions in advance, and I...
Persistent link: https://www.econbiz.de/10011117671
into foreign outsourcing. We show that multinational firms are able to shift profits abroad even if they fully comply with …
Persistent link: https://www.econbiz.de/10010679143
competition and two-way offshoring and to integrate theoretical results of the early offshoring literature. …
Persistent link: https://www.econbiz.de/10010738190
-level imports by country of origin and further distinguish between firm-level offshoring of final versus intermediate goods. Results … competition has no effect on firm survival, while offshoring of finished goods to China actually increases firms' probability of … in low-tech Belgian manufacturing over our period of analysis. Offshoring to China further accounts for a small but …
Persistent link: https://www.econbiz.de/10010595058