|
|
|
|
||||
|
||||
Outsourcing in a Global EconomyGene M. GrossmanPrinceton University - Woodrow Wilson School of Public and International Affairs; Princeton University - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research); Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER) Elhanan HelpmanHarvard University - Department of Economics; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR) August 2002 Harvard Institute Research Working Paper No. 1966 Abstract: We study the determinants of the location of sub-contracted activity in a general equilibrium model of outsourcing and trade. We model outsourcing as an activity that requires search for a partner and relationship-specific investments that are governed by incomplete contracts. The extent of international outsourcing depends inter alia on the thickness of the domestic and foreign market for input suppliers, the relative cost of searching in each market, the relative cost of customizing inputs, and the nature of the contracting environment in each country.
Number of Pages in PDF File: 56 Keywords: Outsourcing, Imperfect Contracting, Trade in Intermediate Goods, Intra-industry Trade JEL Classification: F12, L14, L22, D23 working papers seriesDate posted: October 15, 2002Suggested CitationContact Information
|
|
|||||||||||||||||||||||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo5 in 0.610 seconds
