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| Tekijä: | Naghavi, A. Ottaviano, G. |
| Otsikko: | Firm heterogeneity, contract enforcement, and the industry dynamics of offshoring |
| Lehti: | Scandinavian Journal of Economics
2009 : VOL. 111:4, p. 629-653 |
| Asiasana: | contracts industrial dynamics offshore industry offshore investment |
| Kieli: | eng |
| Tiivistelmä: | An endogenous growth model with R&D spillovers is developed to study the long-run consequences of offshoring with firm heterogeneity and incomplete contracts. In the study, offshoring is modeled as the geographical fragmentation of a firm's production chain between a home upstream division and a foreign downstream division. While positive correlation is always found between upstream bargaining weight and offshoring activities, there is an inverted U-shaped relationship between these and growth. Whether offshoring with incomplete contracts also increases consumption depends on firm heterogeneity. |
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