search query: @journal_id 1342 / total: 707
reference: 388 / 707
Author: | Glass, A. Saggi, K. |
Title: | Innovation and wage effects of international outsourcing |
Journal: | European Economic Review
2001 : JAN, VOL. 45:1, p. 67-86 |
Index terms: | INTERNATIONAL OUTSOURCING INNOVATION |
Language: | eng |
Abstract: | The authors investigate the effects of increased outsourcing of production to a low wage country. Such international outsourcing lowers the marginal cost of production and thus increases profits, creating greater incentives for innovation. A reduction in the resource requirement in adapting technology relative to improving products or an expansion in the portion of production that can be outsourced generates a greater extent of international outsourcing, a lower relative wage and a faster rate of innovation. |
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