Kiel Working Papers, Kiel Institute for World Economics
No 1564:
The Labor Market Effects of Outsourcing Parts and Components: Adverse Cournot Competition
Michael Hübler
Abstract: This paper contributes to Hübler (2008) who analyses a
partial equilibrium model of outsourcing with Cournot competition in
intermediate good production. Final production is located in Western
Europe, whereas the intermediate good can be manufactured by a Western
(outsourcing) or Eastern European supplier (offshore outsourcing). The
paper asks the question how changes in production costs, in particular
wages, affect output and thus labor input in the two regions. The paper
proves analytically that under certain conditions higher production costs
in one region reduce intermediate good production in both regions
Keywords: Offshoring, outsourcing, Cournot competition, intermediate goods, high-skilled, low-skilled; (follow links to similar papers)
JEL-Codes: D24,; D43,; F20,; J31; (follow links to similar papers)
11 pages, October 2009
Before downloading any of the electronic versions below
you should read our statement on
copyright.
Download GhostScript
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Downloadable files:
the-labor-market-effects- ... e-cournot-competition.pdf 
Download Statistics
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Programing by
Design Joakim Ekebom
