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Firm Heterogeneity, Contract Enforcement, and the Industry Dynamics of Offshoring AgEcon
Naghavi, Alireza; Ottaviano, Gianmarco I.P..
We develop an endogenous growth model to study the long run consequences of offshoring with firm heterogeneity and incomplete contracts. In so doing, we model offshoring as the geographical fragmentation of a firm’s production chain between a home upstream division and a foreign downstream one. On the positive side, we show that, when contracts are incomplete, the possibility of offshoring has favorable implications for economic growth. Yet, offshoring induced by a higher bargaining power of the upstream division can hamper growth: while there is always a positive correlation between upstream bargaining weight and offshoring activities, there is a non-monotonic relationship between these and growth. Whether offshoring with incomplete contracts also...
Tipo: Working or Discussion Paper Palavras-chave: Offshoring; Heterogeneous Firms; Incomplete Contracts; Growth; Industry Dynamics; Industrial Organization; D23; F23; L23; O31; O43.
Ano: 2009 URL: http://purl.umn.edu/52542
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Outsourcing and Offshoring: Sector Implications for Dynamics, Growth, and Sustainability AgEcon
Weaver, Robert D.; Chung, Sung Hoon.
As national economies have integrated through removal of trade barriers, the potential for offshoring production was quickly recognized as a strategy to enhance firm performance. At the same time, labor market reforms opened the door for outsourcing of labor services to specialist firms that supply labor force teams. The implications of these trends for industries that rely on specialized workforces have drawn considerable attention. Both manufacturing and food processing have seen substantial movement toward oursourced labor, yet little research has considered the implications of these trends. In both manufacturing and food processing, specific labor skills are needed that require training and consistency of supply to ensure efficiency in raw material and...
Tipo: Conference Paper or Presentation Palavras-chave: Labor force; Offshoring; Outsourcing; Food System; Sustainability; Agribusiness; Agricultural and Food Policy; Farm Management; Food Consumption/Nutrition/Food Safety; Risk and Uncertainty.
Ano: 2009 URL: http://purl.umn.edu/59201
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Immigration, Offshoring and American Jobs AgEcon
Ottaviano, Gianmarco I.P.; Peri, Giovanni; Wright, Greg C..
How many "American jobs" have U.S.-born workers lost due to immigration and offshoring? Or, alternatively, is it possible that immigration and offshoring, by promoting cost-savings and enhanced efficiency in firms, have spurred the creation of jobs for U.S. natives? We consider a multi-sector version of the Grossman and Rossi-Hansberg (2008) model with a continuum of tasks in each sector and we augment it to include immigrants with heterogeneous productivity in tasks. We use this model to jointly analyze the impact of a reduction in the costs of offshoring and of the costs of immigrating to the U.S. The model predicts that while cheaper offshoring reduces the share of natives among less skilled workers, cheaper immigration does not, but rather reduces the...
Tipo: Working or Discussion Paper Palavras-chave: Employment; Production tasks; Immigrants; Offshoring; Labor and Human Capital; F22; F23; J24; J61.
Ano: 2010 URL: http://purl.umn.edu/98462
Registros recuperados: 3
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