NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Outsourcing in a Global Economy

Gene M. Grossman, Elhanan Helpman

NBER Working Paper No. 8728
Issued in January 2002
NBER Program(s):   ITI

We study the determinants of the location of sub-contracted activity in a general equilibrium model of outsourcing and trade. We model outsourcing as an activity that requires search for a partner and relationship-specific investments that are governed by incomplete contracts. The extent of international outsourcing depends inter alia on the thickness of the domestic and foreign market for input suppliers, the relative cost of searching in each market, the relative cost of customizing inputs, and the nature of the contracting environment in each country.

download in pdf format
   (558 K)

email paper

This paper is available as PDF (558 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Published: Grossman, Gene M. and Elhanan Helpman. "Outsourcing In A Global Economy," Review of Economic Studies, 2005, v72(250,Jan), 135-159.

Users who downloaded this paper also downloaded these:
Mankiw and Swagel w12398 The Politics and Economics of Offshore Outsourcing
Bergin, Feenstra, and Hanson w13144 Outsourcing and Volatility
Holmes and Thornton Snider w14856 A Theory of Outsourcing and Wage Decline
Bartel, Lach, and Sicherman w11158 Outsourcing and Technological Change
Grossman and Helpman w9300 Outsourcing versus FDI in Industry Equilibrium
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us