Arbeitspapier
Outsourcing, public input provision and policy cooperation
This paper concerns public input provision as an instrument for redistribution under international outsourcing by using a model-economy comprising two countries, North and South, where firms in the North may outsource part of their low-skilled labor intensive production to the South. We consider two interrelated issues: (i) the incentives for each country to modify the provision of public input goods in response to international outsourcing, and (ii) whether international outsourcing justifies policy cooperation. If the public input good is substitutable for (complementary with) outsourcing in terms of the production function faced by northern firms, then outsourcing contributes to increase (decrease) the public input provision in the North. For the South, the optimal policy response depends on the level of outsourcing. We also show how policy cooperation with respect to public input provision can be designed to increase the overall social welfare.
- Language
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Englisch
- Bibliographic citation
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Series: IZA Discussion Papers ; No. 4662
- Classification
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Wirtschaft
Taxation and Subsidies: Efficiency; Optimal Taxation
Business Taxes and Subsidies including sales and value-added (VAT)
Wage Level and Structure; Wage Differentials
Job, Occupational, and Intergenerational Mobility; Promotion
- Subject
-
Outsourcing
redistribution
public input goods
asymmetric information
Öffentliches Gut
Infrastruktur
Verteilungspolitik
Outsourcing
Offshoring
Nord-Süd-Beziehungen
Zwei-Länder-Modell
Internationale wirtschaftspolitische Koordination
Wohlfahrtseffekt
Theorie
- Event
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Geistige Schöpfung
- (who)
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Aronsson, Thomas
Koskela, Erkki
- Event
-
Veröffentlichung
- (who)
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Institute for the Study of Labor (IZA)
- (where)
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Bonn
- (when)
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2009
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Aronsson, Thomas
- Koskela, Erkki
- Institute for the Study of Labor (IZA)
Time of origin
- 2009
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