A Simple Model of Offshore Outsourcing, Technology Upgrading and Welfare

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Jung, Jaewon; Mercenier, Jean;
  • Publisher: HAL CCSD
  • Subject: Offshore outsourcing; Globalization; Skill upgrading, Technology upgrading; Firm heterogeneity | Technology upgrading | Offshore outsourcing | [SHS.ECO]Humanities and Social Sciences/Economics and Finance | Globalization | Firm heterogeneity | JEL: F - International Economics/F.F1 - Trade/F.F1.F16 - Trade and Labor Market Interactions | Offshore outsourcing,Globalization,Skill upgrading,Technology upgrading,Firm heterogeneity | Skill upgrading
    • jel: jel:F16

We adapt Yeaple's (2005) heterogeneous agents framework to model firms in the North as making explicit offshore outsourcing decisions to cheap-labor economies. Globalization results from a lowering of the set-up costs incurred when engaging in offshore activities. We hi... View more
  • References (19)
    19 references, page 1 of 2

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