Outsourcing: a critique of the value-chain model

Ali Shamsavari ()
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Ali Shamsavari: Kingston University London

No 2010-3, Economics Discussion Papers from School of Economics, Kingston University London

Abstract: This paper examines the economics of outsourcing and its impact on home and host countries. It argues that some of the explanations for this phenomenon, particularly by management science are too simplistic. It is also shown how (with a brief study of the Mexican case) 'cheap labour' which is often the motivation given for outsourcing, far from being an original condition is itself a historical product of political and economic factors. It concludes by showing that increasingly outsourcing as well as innovation will be reversed and come back to the shores of the home countries.

Keywords: outsourcing; off-shoring; value-chain; TNC; EDI; globally-integrated production; reverse outsourcing; reverse innovation (search for similar items in EconPapers)
JEL-codes: F02 L24 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2010-11-11
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Persistent link: https://EconPapers.repec.org/RePEc:ris:kngedp:2010_003

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