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Contractual Versus Generic Outsourcing : The Role of Proximity

Author: Robert C Feenstra; Barbara J Spencer
Publisher: Cambridge, Mass. National Bureau of Economic Research 2005.
Series: Working paper series (National Bureau of Economic Research), no. w11885.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
We explore the relationship between proximity of buyers and sellers and the organizational form of outsourcing. Outsourcing can be "contractual" in which suppliers undertake specific investments or involve "generic" market transactions. Proximity expands the variety of products sourced through contracts abroad rather than at home, but the range of generic imports is unchanged. A higher-quality foreign workforce  Read more...
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Details

Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Robert C Feenstra; Barbara J Spencer
OCLC Number: 1027312136
Notes: December 2005.
Description: 1 online resource.
Details: Mode of access: World Wide Web.
Series Title: Working paper series (National Bureau of Economic Research), no. w11885.
Responsibility: Robert C. Feenstra, Barbara J. Spencer.

Abstract:

We explore the relationship between proximity of buyers and sellers and the organizational form of outsourcing. Outsourcing can be "contractual" in which suppliers undertake specific investments or involve "generic" market transactions. Proximity expands the variety of products sourced through contracts abroad rather than at home, but the range of generic imports is unchanged. A higher-quality foreign workforce raises the variety of contractual trade, but at the expense of generics. We confirm these predictions using data for ordinary versus processing exports from Chinese provinces to destination markets and also the predictions of an extended model that allows for multinational production.

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