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

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Kiel Working Paper ; No. 1564

Classification and Topics

• Classification: 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
• Subject: Offshoring ; outsourcing ; Cournot competition ; intermediate goods ; high-skilled ; low-skilled ; Offshoring ; Outsourcing ; Vorprodukt ; Beschäftigungseffekt ; Duopol ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hübler, Michael
• Event: Veröffentlichung
• (who): Kiel Institute for the World Economy (IfW)
• (where): Kiel
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/30066
• Last update: 10.03.2025, 11:43 AM CET