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The distributional effects of international outsourcing in a 2×2 production model


Egger, Hartmut; Falkinger, Josef (2003). The distributional effects of international outsourcing in a 2×2 production model. North American Journal of Economics and Finance, 14(2):189-206.

Abstract

This paper examines the distributional effects of international outsourcing in a two-sector, two-factor model. The analysis allows for switches between diversified and specialized equilibria. Also, equilibria in which only some firms of a sector outsource (incomplete or partial outsourcing) are considered. It is the interplay of the cost-saving and substitution effects of international outsourcing that determines the nature of the outsourcing equilibrium and its distributional consequences.

Abstract

This paper examines the distributional effects of international outsourcing in a two-sector, two-factor model. The analysis allows for switches between diversified and specialized equilibria. Also, equilibria in which only some firms of a sector outsource (incomplete or partial outsourcing) are considered. It is the interplay of the cost-saving and substitution effects of international outsourcing that determines the nature of the outsourcing equilibrium and its distributional consequences.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Language:English
Date:29 May 2003
Deposited On:11 Feb 2008 12:21
Last Modified:06 Dec 2017 13:12
Publisher:Elsevier
ISSN:1062-9408
Publisher DOI:https://doi.org/10.1016/S1062-9408(03)00023-8

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