Publication
Oct 2009
This paper analyzes a partial equilibrium model of outsourcing with Cournot competition in intermediate goods production. It asks how changes in production costs, in particular wages, affect output and thus labor input in Western and Eastern Europe. The author proves analytically that under certain conditions higher production costs in one region reduce intermediate goods production in both regions.
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English (PDF, 11 pages, 1.0 MB) |
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Author | Michael Hübler |
Series | Kiel Institute Working Papers |
Issue | 1564 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2009 Kiel Institute for the World Economy |