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industry. Also, the initialadvantage of a country as a potential host for outsourcing activities can create a lock ineffect …
Persistent link: https://www.econbiz.de/10005862878
an industry. Also, the initial advantage of a country as a potential host for outsourcing activities can create a lock in … an outsourcing equilibrium than in a regime of no outsourcing. Consumer welfare rises, and under fairly plausible …
Persistent link: https://www.econbiz.de/10014049472
We provide a comprehensive empirical analysis of the links between international services outsourcing, domestic … outsourcing, profits and innovation using plant level data. We find a positive effect of international outsourcing of services on … innovative activity at the plant level. Such a positive effect can also be observed for domestic outsourcing of services, but the …
Persistent link: https://www.econbiz.de/10013070695
We develop a model with two asymmetric countries. Firms choose the number and the location of plants that they operate. The production of each firm increases when trade costs fall. The fall also induces multinationals to repatriate their production into a single country, which is likely to be...
Persistent link: https://www.econbiz.de/10012776607
We introduce a simple oligopolistic trade model with international transportation costs, and analyze the profitability and the social desirability of national vs. international mergers in relation to three different issues, (i) the level of trade freeness, (ii) the possibility of rent...
Persistent link: https://www.econbiz.de/10012779641
We analyze an oligopolistic market where a domestic and a foreign firm are engaged in a takeover battle for a domestic competitor. Any merger or acquisition (M&A) must be approved by a welfare maximizing domestic competition agency which may or may not be prone to "economic patriotism". A...
Persistent link: https://www.econbiz.de/10013316871
We develop a theory of a firm in an environment with incomplete contracts. The firm's headquarter decides on the complexity, the organization, and the global scale of its production process. Specifically, it decides: i) on the mass of symmetric intermediate inputs that are part of the value...
Persistent link: https://www.econbiz.de/10013136032
organizational decision is driven by two countervailing effects: the ownership rights effect favors outsourcing, while the "indirect … outsourcing of the "less important" supplier is chosen in equilibrium. We also consider an open economy setup where the producer …
Persistent link: https://www.econbiz.de/10013106002
With outsourcing comes a perceived tension between the competitive pressures faced by domestic firms and the effect … that outsourcing has on domestic workers. To address this tension, we present a general-equilibrium model with an … oligopolistic export sector and a competitive import-competing sector. When there is a minimum wage, an outsourcing tax might be …
Persistent link: https://www.econbiz.de/10012783501
This paper pursues three aims. First, we provide a review of current theoretical advances which pertain to the relationship between trade, FDI and labor markets. We do so under the following (not mutually exclusive) headings: (1) slicing-up the value added chain and the turn to a task-based...
Persistent link: https://www.econbiz.de/10013134820