TY  - JOUR
AU  - Grossman,Gene M.
AU  - Helpman,Elhanan
TI  - Outsourcing in a Global Economy
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 8728
PY  - 2002
Y2  - January 2002
UR  - http://www.nber.org/papers/w8728
L1  - http://www.nber.org/papers/w8728.pdf
N1  - Author contact info:
Gene M. Grossman
International Economics Section
Department of Economics
Princeton University
Princeton, NJ 08544
Tel: 609/258-4823
Fax: 609/258-1374
E-Mail: grossman@princeton.edu

Elhanan Helpman
Eitan Berglas School of Economics
Tel Aviv University
Ramat Aviv
Tel Aviv 69978  ISRAEL
Tel: 972-3-641-0194
Fax: 972-3-642-8074
E-Mail: ehelpman@harvard.edu
M1  - published as Grossman, Gene M. and Elhanan Helpman. "Outsourcing In A Global Economy," Review of Economic Studies, 2005, v72(250,Jan), 135-159.
AB  - 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.
ER  -