Title: Outsourcing in a Global Economy

Abstract: We live in an age of outsourcing. Firms seem to be subcontracting an ever expanding set of activities, ranging from product design to assembly, from research and development to marketing, distribution and after-sales service. Some firms have gone so far as to become "virtual" manufacturers, owning designs for many products but making almost nothing themselves.1 Vertical disintegration is especially evident in international trade. A recent annual report of the World Trade Organization (1998) details, for example, the production of a particular "American" car…

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Publication ID: 47

Category Description: General Issues of International Trade Statistics

Publication Type: Paper

Inistitute: The Review of Economic Studies

Year: 2005

Month: February

Sub Title:

Author 1: Gene Grossman

Author 2: Elhanan Helpman

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Link: http://www.princeton.edu/~grossman/outsourcing.pdf

Tags: contractible investment , intermediary trade , Outsourcing and trade , relationship-specific investments , subcontracting ,

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