We show that, even with flexible domestic wages, international outsourcing may worsen the welfare of the home country … and reduce the profits of all firms. If wages are rigid, outsourcing is welfare-improving if and only if the sum of the … welfare. We also extend the model to a two-period framework. Delaying outsourcing can be gainful because the fixed cost of …

In this paper we explore the role that demand uncertainty plays for the offshoring decision, and the role that … offshoring plays for domestic volatility of employment. Offshoring is modeled as in Antràs & Helpman (2004), but we assume … firm’s employment decision in its domestic and offshore production. In this environment, offshoring is driven by …

core functions provided the cost of outsourcing is not too high. In this paper, we build a model to show how contraction in … out to say, India (abroad). We identify the conditions under which switching from pure domestic production to outsourcing …

causes and consequences of outsourcing. While much of this work has focused on the outsourcing versus domestic production … decision of the firm with labor cost-saving as the key driver for outsourcing, we further explore how preference …-based outsourcing may arise in a dynamic world equilibrium. We address this problem in a North-South model in which the outsourcing …

causes and consequences of outsourcing. While much of this work has focused on the outsourcing versus domestic production … decision of the firm with labor cost-saving as the key driver for outsourcing, we further explore how preference …-based outsourcing may arise in a dynamic world equilibrium. We address this problem in a North-South model in which the outsourcing …

A service provider firm in an outsourcing relationship is distinct from a typical firm because it is not a stand alone …, rent, energy consumption cannot appropriately determine a Business Process Outsourcing (BPO) firm's productivity. Academic … perspective of the host country, the sourcing firm, the global outsourcing industry and of course the service provider firm. In …