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http://dspace.mediu.edu.my:8181/xmlui/handle/10419/3977| Title: | A simple model of outsourcing with Cournot competition |
| Keywords: | J31 D24 D43 F20 ddc:330 Offshoring Outsourcing Cournot competition Intermediate good Offshoring Outsourcing Vorprodukt Duopol Internationale Arbeitsteilung Allokation Theorie |
| Issue Date: | 16-Oct-2013 |
| Publisher: | Kiel Institute for the World Economy (IfW) Kiel |
| Description: | The paper analyses a partial equilibrium outsourcing model 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). Interregional production (factor) allocation depending on factor prices and productivity levels is investigated analytically and graphically. The main results are: Higher production costs in one region reduce intermediate good production in both regions leading to a substitution effect between high- and low-skilled labour intensive inputs rather than between eastern and western low-skilled labour intensive inputs. The sensitivity of outsourcing activities to production cost changes is highest when the interregional cost differential is smallest. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/3977 |
| Other Identifiers: | http://hdl.handle.net/10419/3977 ppn:527062189 |
| Appears in Collections: | EconStor |
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