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We construct a model of offshoring with externalities and firm heterogeneity. Due to the presence of externalities …, temporary shocks like the Y2K problem can have permanent effects, i.e., they can permanently raise the extent of offshoring in … an industry. Also, the initial advantage of a country as a potential host for outsourcing activities can create a lock in …
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 …
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...
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...
The paper builds a framework for the analysis of research and development (R&D) offshoring and outsourcing that …
of tasks. Two main channels of offshoring tasks are taken into account: offshore outsourcing and in-house offshoring. The … offshoring channel. Offshore outsourcing of R&D has a positive effect on the anticipated domestic employment, whereas in …-house offshoring of R&D has a negative effect. Specific for the manufacturing sector is that offshore outsourcing of production also …
-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 …
While the increased frequency of relocation of productive capacities to lower wage countries from developed economies has given rise to discussions concerning job losses and de-industrialisation, developments in the host countries of relocation have been widely neglected. Hungary, together with...
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 …
This paper explores the effects of outsourcing on employee well-being through the use of the Finnish linked employer …-employee data. The direct negative effect of outsourcing is attributable to greater job destruction and worker outflow. In terms of … perceived well-being, the winners in international outsourcing are those who are capable of performing interactive tasks (i …