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FDI coexists with international outsourcing, family firms unambiguously decrease FDI, whereas the effect on international … outsourcing is ambiguous: A substitution process may work towards an increase in international outsourcing activities. …
Persistent link: https://www.econbiz.de/10008764102
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
I survey the influence of Grossman and Hart's (1986) seminal paper in the field of International Trade. I discuss the implementation of the theory in open-economy environments and its implications for the international organization of production and the structure of international trade flows. I...
Persistent link: https://www.econbiz.de/10009320400
reduce the relative prevalence of FDI or foreign outsourcing. The impact on the composition of offshoring depends on whether … of these organizational forms. Better contracting institutions in the South raise the prevalence of offshoring, but may …
Persistent link: https://www.econbiz.de/10005792310
We develop a theory of a firm in an incomplete contracts environment which decides on the complexity, the organization, and the global scale of its production process. Specifically, the firm decides i) how many intermediate inputs are simultaneously combined to a final product, ii) if the...
Persistent link: https://www.econbiz.de/10010776980
We develop a theory of a firm in an incomplete contracts environment which decides on the complexity, the organization, and the global scale of its production process. Specifically, the firm decides i) how many intermediate inputs are simultaneously combined to a final product, ii) if the...
Persistent link: https://www.econbiz.de/10010956712
from a low-wage country. Offshoring an intermediate is only profitable when it has matured sufficiently and the savings in … for parts that are only exported later, consistent with offshoring becoming gradually more difficult. …
Persistent link: https://www.econbiz.de/10010931451
–South theoretical framework, I show that higher Northern tariffs reduce the incentives for outsourcing and offshoring, while higher … Southern tariffs have the opposite effects. I also show that increased offshoring and outsourcing imply a decrease in the ratio …
Persistent link: https://www.econbiz.de/10011056320
has to overcome. If production abroad involves a fixed cost, offshoring one intermediate unambiguously facilitates … offshoring of other intermediates. However, if production abroad involves incomplete contracts, offshoring one intermediate …
Persistent link: https://www.econbiz.de/10009324256
We survey an emerging literature at the intersection of organizational economics and international trade. We argue that a proper modeling 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/10008765256