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Managerial Incentives and the International Organization of Production / Elhanan Helpman, Gene M. Grossman.
- Format:
- Book
- Author/Creator:
- Helpman, Elhanan.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w9403.
- NBER working paper series no. w9403
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2002.
- Summary:
- We develop a model in which the heterogeneous firms in an industry choose their modes of organization and the location of their subsidiaries or suppliers. We assume that the principals of a firm are constrained in the nature of the contracts they can write with suppliers or employees. Our main result concerns the sorting of firms with different productivity levels into different organizational forms. We use the model to examine the implications of falling trade costs for the relevant prevalence of outsourcing and foreign direct investment.
- Notes:
- Print version record
- December 2002.
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