search query: @author Saggi, K. / total: 8
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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.
SCIMA record nr: 222994
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