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reshoring or offshoring. When the demand elasticity rises with price, two policy instruments generally are needed to achieve …
Persistent link: https://www.econbiz.de/10012660008
be performed at home or abroad, but offshoring entails costs that vary by task. In equilibrium, the tasks with the … highest offshoring costs may not be traded. Among the remainder, those with the relatively higher offshoring costs are …
Persistent link: https://www.econbiz.de/10012464094
tradable tasks and use it to study how falling costs of offshoring affect factor prices in the source country. We identify a …
Persistent link: https://www.econbiz.de/10012465939
. The paper identifies conditions under which outsourcing to a low-wage country is a "friend" or an "enemy" to domestic …
Persistent link: https://www.econbiz.de/10009749606
Economic globalization causes an increasing international fragmentation (disintegration) of value-added-chains, whereby firms outsource components of production to foreign markets. There is a high level of concern about unwelcome distributional effects. This paper provides a theoretical...
Persistent link: https://www.econbiz.de/10009750232
fragmentation may cause a domestic welfare loss, because outsourcing takes place in discrete steps where it affords firms "quasi … process of fragmentation caused by less costly outsourcing is beneficial for the domestic economy. …
Persistent link: https://www.econbiz.de/10009750239
International fragmentation, or outsourcing, is often referred to as a distinctly novel feature in today's global … outsourcing targets for western European firms. Against this background this paper provides a policy-oriented discussion of cross … European point of view. Specifically, the paper idetifies conditions under which outsourcing is beneficial for a western …
Persistent link: https://www.econbiz.de/10009750858
outsourcing, or international fragmentation. Economists have investigated this phenomenon with a focus on welfare and factor price … welfare efect of outsourcing. Moreover, the paper highlights a crucial distinction between outsourcing that takes place in an … firms must rely on arms-length trasactions. The results are as follows. a) With foreign direct investment, outsourcing which …
Persistent link: https://www.econbiz.de/10009750859
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,...
Persistent link: https://www.econbiz.de/10012471481
relevant prevalence of outsourcing and foreign direct investment …
Persistent link: https://www.econbiz.de/10012469300