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This paper proposes a proximity-concentration tradeoff in product space as a determinant of horizontal foreign direct investment (FDI). Firms that enter a foreign market by exporting are able to capture consumer surplus from introducing a differentiated product with characteristics that the...
Persistent link: https://www.econbiz.de/10010227197
This paper proposes a proximity-concentration tradeoff in product space as a determinant of horizontal foreign direct investment (FDI). Firms that enter a foreign market by exporting are able to capture consumer surplus from introducing a differentiated product with characteristics that the...
Persistent link: https://www.econbiz.de/10013060458
faster task offshoring in sectors exposed to lower labour-market tightness. We discuss policy implications of these findings. …
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these stages. This paper looks at both cost minimising and equilibrium offshoring under different technological … wide range of production stages. There can be overshooting (off-shoring that is reversed as costs fall further) and … equilibrium may involve less off-shoring than is efficient"--National Bureau of Economic Research web site …
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