| Tekijä: | Kohler, W. |
| Otsikko: | International outsourcing and factor prices with multistage production |
| Lehti: | Economic Journal
2004 : MAR, VOL. 114:494, p. C166-C185 |
| Asiasana: | Outsourcing Production Prices International Models |
| Kieli: | eng |
| Tiivistelmä: | This paper develops a dual representation of the technology of international fragmentation for an industry using 2 factors in a continuum of stages. Then, a generalized factor price frontier incorporating an endogenous adjustment of the margin of fragmentation is derived. Using this frontier in a 2 x 2 general equilibrium model, the role of outsourcing is investigated in the adjustment to a decline in the final output price of the multistage industry, and the attendant factor price effects. Also, explored is the implications of an improved technology of international fragmentation on the margin of fragmentation and on domestic factor prices. |
SCIMA