Temporary Shocks and Offshoring: The Role ofExternal Economies and Firm Heterogeneity

We construct a model of offshoring with externalities and firm heterogeneity. Due to thepresence of externalities, temporary shocks like the Y2K problem can have permanenteffects, i.e., they can permanently raise the extent of offshoring in an industry. Also, the initialadvantage of a country as a potential host for outsourcing activities can create a lock ineffect, whereby late movers have a comparative disadvantage...

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Year of publication:	2007-05-01
Authors:	Mitra, Devashish ; Ranjan, Priya
Institutions:	Forschungsinstitut zur Zukunft der Arbeit <Bonn>
Subject:	Outsourcing \| Offshoring \| Komplementarität

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Extent:	409600 bytes 33 p. application/pdf
Series:	IZA - Forschungsinstitut zur Zukunft der Arbeit - Discussion Papers IZA Discussion Paper ; No. 2811 (2007)
Type of publication:	Book / Working Paper
Language:	English
Classification:	F12 - Models of Trade with Imperfect Competition and Scale Economies ; F23 - Multinational Firms; International Business ; O19 - International Linkages to Development; Role of International Organizations ; Management and business organisation. General ; Individual Working Papers, Preprints ; No country specification
Source:	USB Cologne (business full texts)

Persistent link: https://www.econbiz.de/10005862878