Article ID Journal Published Year Pages File Type
9725853 International Review of Economics & Finance 2005 8 Pages PDF
Abstract
This paper presents a model that helps explain incomplete outsourcing in the presence of spillovers. Outsourcing may require training of workers in the low wage economy. Such training yields spillover benefit to rival firms located in the low wage economy. The outsourcing firm must balance the marginal gain (cost saving) with the marginal cost (lowering rivals' cost).
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Authors
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