Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/28364
Authors: 
Hanley, Aoife
Ott, Ingrid
Year of Publication: 
2009
Series/Report no.: 
Kiel Working Paper 1537
Abstract: 
Formulating a model which summarises transportation costs, uncertainty and price, we describe how a switch to ICT procurement can impact more readily procured services rather than materials. Uncertainty represents a catch-all factor describing the dovetailing of operations between two neither culturally nor geographically proximate, independent firms. Using a 3-year panel, we find that ICT 'switchers' report increases in services offshored by between 1.9 and 1.6 percent. Uniquely, we also report a 2-3 percent reduction in the level of materials offshoring following a switch to internet procurement.
Subjects: 
Offshoring
heterogeneous inputs
uncertainty
price
transportation costs
Document Type: 
Working Paper

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