Arbeitspapier

The labor market effects of outsourcing parts and components: adverse Cournot competition

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.

Sprache
Englisch

Erschienen in
Series: Kiel Working Paper ; No. 1564

Klassifikation
Wirtschaft
Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
International Factor Movements and International Business: General
Wage Level and Structure; Wage Differentials
Thema
Offshoring
outsourcing
Cournot competition
intermediate goods
high-skilled
low-skilled
Offshoring
Outsourcing
Vorprodukt
Beschäftigungseffekt
Duopol
Theorie

Ereignis
Geistige Schöpfung
(wer)
Hübler, Michael
Ereignis
Veröffentlichung
(wer)
Kiel Institute for the World Economy (IfW)
(wo)
Kiel
(wann)
2009

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Hübler, Michael
  • Kiel Institute for the World Economy (IfW)

Entstanden

  • 2009

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