Offshoring with endogenous NGO activism

• 成果类型: Article
• 署名作者: Krautheim, Sebastian; Verdier, Thierry
• 署名单位: University of Passau; Institut Polytechnique de Paris; Ecole des Ponts ParisTech; Centre for Economic Policy Research - UK
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2016.03.009
• 发表日期: 2016
• 页码: 22-41
• 关键词: NGOs; Offshoring; credence goods; GLOBALIZATION

摘要

The process of globalization is characterized by an impressive growth of global value chains, as well as the proliferation of non-governmental organizations (NGOs) interacting with multinational firms. This paper presents a model of offshoring and NGO-firm interactions in which offshoring to a low-regulation country allows a monopolist to implement a dirty technology undesired by consumers. Consumers can reduce the incentive for dirty production by financing an NGO monitoring the firm. NGO emergence and offshoring can arise as joint and interacting outcomes. For a range of trade costs, NGO emergence allows firms to capture gains from globalization, which would otherwise be unattainable. Somewhat paradoxically, NGO emergence can be at the expense of consumers possibly leading to welfare losses through offshoring. (C) 2016 Elsevier B.V. All rights reserved.