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The comparative advantage of many cities is based on their efficiency in the production of "functions", e.g., business services such as finance, law, engineering, or similar functions that are used by firms in a wide range of sectors. Firms that use these functions may choose to source them...
Persistent link: https://www.econbiz.de/10012417745
fragmentation of activities entrusted to foreign services production units to adapt their information and knowledge protection …
Persistent link: https://www.econbiz.de/10010902180
both of these effects are present and analyzes the effects of increased fragmentation and offshoring in the short run and … always gains from increased fragmentation , whereas poor countries see their static gains partially eroded by a decline in …
Persistent link: https://www.econbiz.de/10005341648
This paper assesses the relative participation of Argentina, Brazil, Guatemala and Nicaragua in fragmented world production. Based on trade statistics from 2000 to 2004, it analyses whether the trade flows of these economies have evolved towards production sharing schemes and how great this type...
Persistent link: https://www.econbiz.de/10010727629
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 …
Persistent link: https://www.econbiz.de/10008635682
paper, we adapt a general model of fragmentation of production activities to try to capture the specific features of …
Persistent link: https://www.econbiz.de/10005662176
The paper studies fragmentation and outsourcing at the international level. …
Persistent link: https://www.econbiz.de/10005755430
. Outsourcing decisions then balance flexibility gains against hold-up costs of opportunistic behaviour by outside contractors. In … equilibrium, the degree of outsourcing is shown to depend on the degree of product market competition, contractor's bargaining … power, and the volatility of demand shocks. Our main result is that an increase in the degree of outsourcing amplifies the …
Persistent link: https://www.econbiz.de/10005789121
We survey an emerging literature at the intersection of organizational economics and international trade. We argue that a proper modelling of the organizational aspects of production provides valuable insights on the aggregate workings of the world economy. In reviewing the literature, we...
Persistent link: https://www.econbiz.de/10005791747
The increased importance of fragmentation in world trade has created an interest among trade economists to explain the …
Persistent link: https://www.econbiz.de/10005112851