The Impact of Differential Falls in Offshoring Costs on Welfare |
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Authors: | Wanida Ngienthi Fumio Dei |
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Institution: | Martin de Tours School of Management, Assumption University, Bang Na Trad Rd., Samut Prakan 10540, Thailand |
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Abstract: | We highlight the fact that offshoring firms and local firms that do not offshore coexist in the North. Adopting the O‐ring production function approach to offshoring, we demonstrate that a fall in offshoring costs in any sector makes the South better off and that if offshoring costs in a high‐technology sector fall at a faster rate, the North is worse off, and vice versa. |
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