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We develop a theory of a firm in an incomplete contracts environment which decides on its complexity, organization, and global scale. Specifically, the firm decides i) how thinly it wants to slice its production process by choosing the mass of symmetric intermediate inputs that are...
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In this paper we study the employment effects of changes in the levels and patterns of outsourcing in the Austrian … components. Outsourcing is modelled as changes in the shares of domestically produced intermediates. For this some further … indirect effects of changes in the levels and structures of outsourcing.Second, the framework takes account of all 60 sectors …
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chapter compares the impact of international trade in intermediate inputs (offshoring) on wage inequality in two distinct but … similar frameworks. In the first framework the profitability of offshoring is based on increasing returns to scale on the task …-level, whereas the second framework relies on differences in relative factor endowments of the two countries involved in offshoring …
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-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 an increase in the …
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integration)? Which firms choose to expand their sourcing activities across the national border (offshoring)? This letter provides … vertical integration and of offshoring tend to have been more productive ex ante than firms choosing not to do so. This finding …
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This paper contributes to Hübler (2008) who analyses a partial equilibrium model of outsourcing with Cournot … manufactured by a Western (outsourcing) or Eastern European supplier (offshore outsourcing). The paper asks the question how …
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