期刊名称:HIER Discussion Paper Series / Harvard Institute of Economic Research
出版年度:2002
卷号:2002
出版社:Harvard Institute of Economic Research
摘要:We develop a model in which the heterogeneous firms in an industry choose their modes of organization and the location of their subsidiaries or suppliers. We assume that the principals of a firm are constrained in the nature of the contracts they can write with suppliers or employees. Our main result concerns the sorting of firms with different productivity levels into different organizational forms. We use the model to examine the implications of falling trade costs for the relevant prevalence of outsourcing and foreign direct investment.