Globalisation , Productivity and Technology Research Paper 2005
نویسنده
چکیده
This paper considers the effect of outsourcing on R&D of the contracting firm. We show that outsourcing increases (decreases) R&D investment in a declining (booming) industry. If outsourcing reduces potential R&D investment, it may also make the consumers worse off. We show that outsourcing raises R&D effort in more competitive product markets. If outsourcing takes place in unskilled activities, it is likely to increase R&D if proportion of skilled employment is higher and skill wage is relatively high. If outsourcing positively affects the productivity of the skilled workers, it provides further disincentive for R&D.
منابع مشابه
Globalisation , Productivity and Technology Research Paper 2005 / 04 Knowledge accumulation and productivity : Evidence from plant level data for Ireland
This paper investigates whether knowledge accumulating activities, such as exporting, R&D, or worker training, can enhance plants’ productivity. To this end we use plant level panel data for Irish manufacturing. Our results importantly indicate that productivity enhancing effects of these factors are found only for domestic firms, but not for foreign multinationals located in Ireland. We postul...
متن کاملGlobalisation , Productivity and Technology Research Paper 2004 / 33 Industry Differences in the Effect of Export Market Entry : Learning by Exporting ?
There is extensive empirical evidence pointing to the existence of sunk costs to exporting. Only higher productivity firms can profitably cover these and enter export markets. This is the standard explanation for the regularity with which econometric analyses reports that exporters are more productive than non-exporters. But what happens to their productivity trajectory once they have entered? ...
متن کاملGlobalisation , Productivity and Technology Research Paper 2005 / 18 Catching up or Pulling Away : Intra - Industry Trade , Productivity Gaps and Heterogeneous Firms
We develop a heterogeneous firm intra-industry trade model in which countries are asymmetric in both technology and size. In our model the productivity gaps and levels across countries are jointly determined by technological asymmetry and trade barriers. By assuming symmetry across countries, Melitz (2003)shows that increased exposure to IIT raise aggregate productivity for all countries via re...
متن کاملGlobalisation , Productivity and Technology Research Paper 2005 / 41 Foreign Direct Investment , Inequality and Growth
This paper examines the interactions between Foreign Direct Investment (FDI), inequality, and growth, both from an empirical and a theoretical point of view. Using a panel of 119 developing countries, we observe that FDI promotes both inequality and growth, and tends to reduce the share of agriculture to GDP in the recipient country. We then set up a growth model of a dual economy in which the ...
متن کاملGlobalisation , Productivity and Technology Research Paper 2009 / 14 The Impact of Globalisation on the Euro Area Macroeconomy
The general acceleration of trade globalisation over the last decade –or a growing interdependence of economies via trade, production and financial market linkages– has engendered several macroeconomic implications for the euro area. This paper focuses on assessing the key impacts on the euro area macroeconomy through an analysis of prospective channels, stylised facts and review of relevant em...
متن کامل