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TitleThe Dynamics of Outsourcing: From Labor Cost-Saving to Preference-Based Outsourcing
Creator鄭琬蓉
Cheng, Wan-Jung;Riezman, Raymond;Wang, Ping
Contributor國貿系
Date2021-03
Date Issued24-Mar-2025 10:24:15 (UTC+8)
SummaryJones's (2000) celebrated book has inspired a generation of work devoted to understanding the causes and consequences of outsourcing. While much of this work has focused on the outsourcing versus domestic production decision of the firm, with labor cost-saving as the key driver for outsourcing, we further explore how preference-based outsourcing may arise in a dynamic world equilibrium. We address this problem in a North–South model in which the outsourcing decision depends not only on labor costs but also on information about local preferences that arise with outsourcing. As the South develops, demand for manufactured goods becomes more important, so identifying specific tastes of Southern consumers matters more. As a result, preference-based outsourcing displaces cost-saving outsourcing. Our quantitative analysis indicates that, as both agricultural and manufacturing technologies grow over time, the dynamic world equilibrium switches from the export regime to the cost-saving outsourcing regime, and eventually to the preference-based outsourcing regime.
RelationInternational Journal of Economic Theory, Vol.17, No.1, pp.57-73
Typearticle
ISBN dynamic outsourcing; learning and taste‐matching; organizational choice
DOI https://doi.org/10.1111/ijet.12292
dc.contributor 國貿系
dc.creator (作者) 鄭琬蓉
dc.creator (作者) Cheng, Wan-Jung;Riezman, Raymond;Wang, Ping
dc.date (日期) 2021-03
dc.date.accessioned 24-Mar-2025 10:24:15 (UTC+8)-
dc.date.available 24-Mar-2025 10:24:15 (UTC+8)-
dc.date.issued (上傳時間) 24-Mar-2025 10:24:15 (UTC+8)-
dc.identifier.isbn (ISBN) dynamic outsourcing; learning and taste‐matching; organizational choice
dc.identifier.uri (URI) https://nccur.lib.nccu.edu.tw/handle/140.119/156271-
dc.description.abstract (摘要) Jones's (2000) celebrated book has inspired a generation of work devoted to understanding the causes and consequences of outsourcing. While much of this work has focused on the outsourcing versus domestic production decision of the firm, with labor cost-saving as the key driver for outsourcing, we further explore how preference-based outsourcing may arise in a dynamic world equilibrium. We address this problem in a North–South model in which the outsourcing decision depends not only on labor costs but also on information about local preferences that arise with outsourcing. As the South develops, demand for manufactured goods becomes more important, so identifying specific tastes of Southern consumers matters more. As a result, preference-based outsourcing displaces cost-saving outsourcing. Our quantitative analysis indicates that, as both agricultural and manufacturing technologies grow over time, the dynamic world equilibrium switches from the export regime to the cost-saving outsourcing regime, and eventually to the preference-based outsourcing regime.
dc.format.extent 98 bytes-
dc.format.mimetype text/html-
dc.relation (關聯) International Journal of Economic Theory, Vol.17, No.1, pp.57-73
dc.title (題名) The Dynamics of Outsourcing: From Labor Cost-Saving to Preference-Based Outsourcing
dc.type (資料類型) article
dc.identifier.doi (DOI) 10.1111/ijet.12292
dc.doi.uri (DOI) https://doi.org/10.1111/ijet.12292