Abstract
This paper analyzes the decision of a multinational firm from a developed country
to slice a production chain and to allocate different tasks in the production chain
globally. The process involves a wide range of tasks that varies from very routine
jobs to research and development (R&D) intensive work. We find that under certain
conditions, a drop in offshoring costs (1) leads to more slicing (an increase in the
length of production chain) and more offshoring, (2) stimulates R&D, and (3) raises
employment in the developed country.
Original language | English |
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Pages (from-to) | 18-34 |
Number of pages | 17 |
Journal | Asia-Pacific Journal of Accounting and Economics |
Volume | 21 |
Issue number | 1 |
Early online date | 3 Dec 2013 |
DOIs | |
Publication status | Published - 2014 |
Externally published | Yes |
Keywords
- R&D
- offshoring
- production chain
- slicing
- innovation
- task