This paper investigates outsourcing and foreign direct investment (FDI) decisions based on factor price differentials … (perfectly) mobile between countries, the Northern firm produces the final product by outsourcing the other fragmentable process … from the South via FDI (either FDI or outsourcing to a Southern outsourcee); (b) when the Southern firm acquires the …

One issue the literature neglects is how outsourcing stimulates trade (imports, exports and foreign direct investment …

Within the context of a product variety model, this paper examines the impact of outsourcing of skill-intensive tasks … on the skilled–unskilled wage gap. Outsourcing affects the wage gap through direct as well as indirect channels. While … outsourcing decreases the effective wage of skilled workers in the services sector, owing to inter-sectoral labour mobility, its …

outsourcing tax on an economy in which the production of a specific intermediate input has been fragmented and outsourced. If the … outsourced sector provides a non-traded input, the outsourcing tax can have adverse impact on labor even if it is the most … labor. In the case where the intermediate input is traded, the outsourcing tax closes down either the intermediate input …

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 …