Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/30066
Authors: 
Hübler, Michael
Year of Publication: 
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

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.