Global Sourcing
| Title: | Global Sourcing |
| Author: |
Antras, Pol; Helpman, Elhanan
Note: Order does not necessarily reflect citation order of authors. |
| Citation: | Antras, Pol, and Elhanan Helpman. 2004. Global sourcing. Journal of Political Economy 112(3): 552-580. |
| Full Text & Related Files: |
antras_globalsourcing.pdf (210.1Kb; PDF) 
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| Abstract: | We present a North‐South model of international trade in which differentiated products are developed in the North. Sectors are populated by final‐good producers who differ in productivity levels. On the basis of productivity and sectoral characteristics, firms decide whether to integrate into the production of intermediate inputs or outsource them. In either case they have to decide from which country to source the inputs. Final‐good producers and their suppliers must make relationship‐specific investments, both in an integrated firm and in an arm’s‐length relationship. We describe an equilibrium in which firms with different productivity levels choose different ownership structures and supplier locations. We then study the effects of within‐sectoral heterogeneity and variations in industry characteristics on the relative prevalence of these organizational forms. |
| Published Version: | http://dx.doi.org/10.1086/383099 |
| Terms of Use: | This article is made available under the terms and conditions applicable to Other Posted Material, as set forth at http://nrs.harvard.edu/urn-3:HUL.InstRepos:dash.current.terms-of-use#LAA |
| Citable link to this page: | http://nrs.harvard.edu/urn-3:HUL.InstRepos:3196327 |
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Peer reviewed scholarly articles from the Faculty of Arts and Sciences of Harvard University
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