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 |
|---|---|
| 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
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