Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5092323 | Journal of Comparative Economics | 2014 | 11 Pages |
Abstract
In a model of organizational choice, this paper shows that in face of an increasingly expected bailout from the government, outsourcing input production to an offshore location is more likely an optimal choice for a firm. Such a response is consistent with the three trends in the US manufacturing sector after the crisis: (a) employment keeps declining; (b) massive layoffs have not stopped; and (c) imported intermediate inputs have been gaining importance.
Related Topics
Social Sciences and Humanities
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Economics and Econometrics
Authors
Travis Ng,