International Outsourcing and Factor Prices with Multistage Production

Bibliographic Data

ID9710509
AuthorsWilhelm Kohler (0000-0002-5860-5331, Johannes Kepler University of Linz, corresponding author)
Year2004
Volume114
Issue494
PagesC166-C185
Publication date2004-03-01
Open AccessYes
TypeARTICLE
VenueThe Economic Journal (JOURNAL)
Journal identifiersISSN: 0013-0133 • E-ISSN: 1468-0297
PublisherOxford University Press (OUP) (PUBLISHER)
DOI10.1111/j.0013-0133.2003.00204.x
OpenAlexW2139897700
LanguageEN
Citations received5
References cited26

We develop a dual representation of the technology of international fragmentation for an industry using 2 factors in a continuum of stages. We then derive a generalised factor price frontier which incorporates an endogenous adjustment of the margin of fragmentation. Using this frontier in a 2 × 2 general equilibrium model, we investigate the role of outsourcing in the adjustment to a decline in the final output price of the multistage industry, and the attendant factor price effects. We also explore the implications of an improved technology of international fragmentation on the margin of fragmentation and on domestic factor prices

Business · Econometrics · Economics · Factor price · Fragmentation (computing · Frontier · Industrial organization · Margin (machine learning · Microeconomics · Outsourcing · Production (economics · Computer Science · Firm Innovation and Growth · Global trade and economics · International Business and FDI · Marketing

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