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dc.contributor.authorStähler, Franken_NZ
dc.date.available2011-04-07T03:05:16Z
dc.date.copyright2005-12en_NZ
dc.identifier.citationStähler, F. (2005). A model of outsourcing and foreign direct investment (Economics Discussion Papers Series No. 516). University of Otago. Retrieved from http://hdl.handle.net/10523/859en
dc.identifier.urihttp://hdl.handle.net/10523/859
dc.description.abstractThis paper presents a model in which two firms may use foreign direct investment or outsourcing in order to reduce the production cost of an intermediate input. Outsourcing requires training which is costly and creates a positive spillover. The paper shows that the equilibrium depends on the level of training costs. If they are high, only bilateral outsourcing is possible in equilibrium. If bilateral outsourcing is incomplete, it will not change prices compared to no outsourcing. If they are low, only complete outsourcing is possible. If complete outsourcing is unilateral (bilateral), the price increases (decreases) with the degree of spillovers.en_NZ
dc.format.mimetypeapplication/pdf
dc.publisherUniversity of Otagoen_NZ
dc.relation.ispartofseriesEconomics Discussion Papers Seriesen_NZ
dc.relation.urihttp://www.business.otago.ac.nz/econ/research/discussionpapers/DP_0516.pdfen_NZ
dc.subjectoutsourcingen_NZ
dc.subjectForeign direct investmenten_NZ
dc.subject.lcshHB Economic Theoryen_NZ
dc.titleA model of outsourcing and foreign direct investmenten_NZ
dc.typeDiscussion Paperen_NZ
dc.description.versionUnpublisheden_NZ
otago.bitstream.pages20en_NZ
otago.date.accession2006-02-02en_NZ
otago.schoolEconomicsen_NZ
otago.openaccessOpen
otago.place.publicationDunedin, New Zealanden_NZ
dc.identifier.eprints207en_NZ
otago.school.eprintsEconomicsen_NZ
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otago.relation.number516en_NZ
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