|
EconStor >
Institut für Weltwirtschaft (IfW), Kiel >
Kieler Arbeitspapiere, IfW >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/3977
|
| | |
| Title: | | A simple model of outsourcing with Cournot competition  |
| Authors: | | Hübler, Michael |
| Issue Date: | | 2007 |
| Series/Report no.: | | Kieler Arbeitspapiere 1320 |
| Abstract: | | The paper analyses a partial equilibrium outsourcing model 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). Interregional production (factor) allocation depending on factor prices and productivity levels is investigated analytically and graphically. The main results are: Higher production costs in one region reduce intermediate good production in both regions leading to a substitution effect between high- and low-skilled labour intensive inputs rather than between eastern and western low-skilled labour intensive inputs. The sensitivity of outsourcing activities to production cost changes is highest when the interregional cost differential is smallest. |
| Subjects: | | Offshoring Outsourcing Cournot competition Intermediate good |
| JEL: | | J31 D24 D43 F20 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des IfW Economists Online Kieler Arbeitspapiere, IfW
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/3977
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|