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Title:The labor market effects of outsourcing parts and components: adverse Cournot competition PDF Logo
Authors:Hübler, Michael
Issue Date:2009
Series/Report no.:Kiel working paper 1564
Abstract:This paper contributes to Hübler (2008) who analyses a partial equilibrium model of outsourcing with Cournot competition in intermediate good production. Final production is located in Western Europe, whereas the intermediate good can be manufactured by a Western (outsourcing) or Eastern European supplier (offshore outsourcing). The paper asks the question how changes in production costs, in particular wages, affect output and thus labor input in the two regions. The paper proves analytically that under certain conditions higher production costs in one region reduce intermediate good production in both regions.
Subjects:Offshoring
outsourcing
Cournot competition
intermediate goods
high-skilled
low-skilled
JEL:D24
D43
F20
J31
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des IfW
Kieler Arbeitspapiere, IfW

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