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Outsourcing in a Global Economy / Gene M. Grossman, Elhanan Helpman.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Grossman, Gene M.
Contributor:
National Bureau of Economic Research.
Helpman, Elhanan.
Series:
Working Paper Series (National Bureau of Economic Research) no. w8728.
NBER working paper series no. w8728
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2002.
Summary:
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.
Notes:
Print version record
January 2002.

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