Interlocking margins: A framework on the interaction of offshoring and outsourcing decisions

Edwin Jiang

CAMA Working Papers from Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University

Abstract: I develop a multi-country general equilibrium model on global sourcing which considers individual firm’s decisions on outsourcing as well as offshoring. These decisions are closely connected as more extensive offshoring provides incentives for further integration of inputs. The firm-level decisions aggregate to produce gravity style equations of trade flows between countries, and intra-firm transactions.

Keywords: international trade; offshoring; outsourcing (search for similar items in EconPapers)
Pages: 24 pages
Date: 2021-07
New Economics Papers: this item is included in nep-bec and nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:een:camaaa:2021-53

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