Managerial incentives and the international organization of production

• 成果类型: Article
• 署名作者: Grossman, GM; Helpman, E
• 署名单位: Princeton University; Tel Aviv University
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/S0022-1996(03)00072-2
• 发表日期: 2004
• 页码: 237-262
• 关键词: Outsourcing; direct foreign investment; theory of the firm; Intra-firm trade

摘要

We develop a model in which the heterogeneous firms in an industry choose their modes of organization and the location of their subsidiaries or suppliers. We assume that the principals of a firm are constrained in the nature of the contracts they can write with suppliers or employees. Our main result concerns the sorting of firms with different productivity levels into different organizational forms. We use the model to examine the implications of falling trade costs for the relevant prevalence of outsourcing and foreign direct investment (FDI). (C) 2003 Elsevier B.V All rights reserved.