Peripheral Tasks Are Offshored

Fumio Dei

Review of International Economics, 2010, vol. 18, issue 5, 807-817

Abstract: I build a model in which an offshoring firm has a core task and a peripheral task. This study demonstrates that in a world composed of the North and the South, the peripheral task is offshored but the core task is not. The study also demonstrates that offshoring does not occur if the skill level of the southern workers is too low.

Date: 2010
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