Offshoring with endogenous NGO activism
Sebastian Krautheim () and
Thierry Verdier
Additional contact information
Sebastian Krautheim: University of Passau
PSE-Ecole d'économie de Paris (Postprint) from HAL
Abstract:
The process of globalization is characterized by an impressive growth of global value chains, as well as the proliferation of non-governmental organizations (NGOs) interacting with multinational firms. This paper presents a model of offshoring and NGO–firm interactions in which offshoring to a low-regulation country allows a monopolist to implement a "dirty" technology undesired by consumers. Consumers can reduce the incentive for dirty production by financing an NGO monitoring the firm. NGO emergence and offshoring can arise as joint and interacting outcomes. For a range of trade costs, NGO emergence allows firms to capture gains from globalization, which would otherwise be unattainable. Somewhat paradoxically, NGO emergence can be at the expense of consumers possibly leading to welfare losses through offshoring.
Keywords: NGOs; Offshoring; Credence goods; Globalization (search for similar items in EconPapers)
Date: 2016-07
References: Add references at CitEc
Citations: View citations in EconPapers (23)
Published in Journal of International Economics, 2016, 101, pp.22-41. ⟨10.1016/j.jinteco.2016.03.009⟩
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Related works:
Journal Article: Offshoring with endogenous NGO activism (2016) 
Working Paper: Offshoring with endogenous NGO activism (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:hal:pseptp:halshs-01509763
DOI: 10.1016/j.jinteco.2016.03.009
Access Statistics for this paper
More papers in PSE-Ecole d'économie de Paris (Postprint) from HAL
Bibliographic data for series maintained by Caroline Bauer ().