Y2K and offshoring

the role of external economies and firm heterogeneity

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Author

Devashish Mitra

Contributions

Ranjan, Priya. - Contributor
National Bureau of Economic Research. - Contributor

Publication

2005 - National Bureau of Economic Research, Cambridge, Mass, Massachusetts

Language

English

Word Count

7,750 words, Guess

Page Count

31 pages

Identifiers

OCLC Control Number62351405
Open LibraryOL17628059M

Description

"We construct a model of offshoring with externalities and firm heterogeneity. Due to the presence of externalities, temporary shocks like the Y2K problem can have permanent effects, i.e., they can permanently raise the extent of offshoring in an industry. Also, the initial advantage of a country as a potential host for outsourcing activities can create a lock in effect, whereby late movers have a comparative disadvantage. Furthermore, the existence of firm heterogeneity along with externalities can help explain the dynamic process of offshoring, where the most productive firms offshore first and the others follow later. Finally, we show the possibility of complementarity between two modes of offshoring: FDI and offshore outsourcing"--National Bureau of Economic Research web site.

Subjects

Topics

Economic aspects Econometric models Offshore assembly industry Year 2000 date conversion (Computer systems)Offshore assembly industry -- Econometric modelsYear 2000 date conversion (Computer systems) -- Economic aspectsEconomic aspects of Year 2000 date conversion (Computer systems)

Series Statement

NBER working paper series -- no. 11718.
Working paper series (National Bureau of Economic Research) -- working paper no. 11718.

Other Editions

Y2K and offshoring: the role of external economies and firm heterogeneityNational Bureau of Economic Research2005-01-01

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