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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/10013014670
reduce the relative prevalence of FDI or foreign outsourcing. The impact on the composition of offshoring depends on whether … of these organizational forms. Better contracting institutions in the South raise the prevalence of offshoring, but may …
Persistent link: https://www.econbiz.de/10012778138
We explore the relationship between proximity of buyers and sellers and the organizational form of outsourcing …. Outsourcing can be "contractual" in which suppliers undertake specific investments or involve "generic" market transactions …
Persistent link: https://www.econbiz.de/10013222317
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/10013233896
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/10013237294
We examine the impact on U.S. labor markets of offshore outsourcing in services to China and India. We also consider … positive effects of inshoring and smaller negative effects of offshore outsourcing. The net effect is positive. To illustrate … how small the effects are, suppose that over the next nine years all of inshoring and offshore outsourcing grew at rates …
Persistent link: https://www.econbiz.de/10012753588
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/10013228044
This paper examines the relationship between the share of employment potentially affected by offshoring and economic … by offshoring and exports of business services, and a negative association with imports of business services. However …
Persistent link: https://www.econbiz.de/10012760485
In this paper we argue that an important source of the recent increase in outsourcing is the computer and information … technological change increases outsourcing because it allows firms to use services based on leading edge technologies without … outsourcing costs of IT-based services generating a positive correlation between the IT level of the user and its outsourcing …
Persistent link: https://www.econbiz.de/10013221885
General purpose technologies like information technology typically require complementary firm-specific investments to create value. These complementary investments produce a form of capital, which is typically intangible and which we call digital capital. We create an extended firm-level panel...
Persistent link: https://www.econbiz.de/10014243983