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Firm Integration Strategies and Imperfect Labour Markets

Title data

Egger, Hartmut ; Egger, Peter ; Seidel, Tobias:
Firm Integration Strategies and Imperfect Labour Markets.
In: Canadian Journal of Economics. Vol. 48 (2015) Issue 5 . - pp. 1883-1901.
ISSN 1540-5982
DOI: https://doi.org/10.1111/caje.12183

Abstract in another language

This paper introduces labour market imperfections into a three-country model to study the determinants of firm integration strategies in an open economy. Accounting simultaneously for the decision upon in-house production versus international outsourcing and the decision upon exporting versus horizontal foreign investment, the analysis points to a crucial role of labour market frictions for the interaction of vertical and horizontal aspects of firm integration strategies in a general equilibrium environment. Beyond that, the analysis sheds light on the consequences of integrating developing countries into the global market, thereby pointing to hitherto unexplored effects arising from adjustments of firm integration strategies. In a welfare analysis, we show that the existence of gains from trade crucially depends on whether firm integration strategies are endogenous or not.

Further data

Item Type: Article in a journal
Refereed: Yes
Keywords: Multinational firms; International outsourcing; Firm integration
strategies; Labor market imperfections
Subject classification: F12, F16, F23, J31, L23
Institutions of the University: Faculties > Faculty of Law, Business and Economics > Department of Economics > Chair Economics II - International Macroeconomics and Trade > Chair Economics II - International Macroeconomics and Trade - Univ.-Prof. Dr. Hartmut Egger
Faculties
Faculties > Faculty of Law, Business and Economics
Faculties > Faculty of Law, Business and Economics > Department of Economics
Faculties > Faculty of Law, Business and Economics > Department of Economics > Chair Economics II - International Macroeconomics and Trade
Result of work at the UBT: Yes
DDC Subjects: 300 Social sciences > 330 Economics
Date Deposited: 25 Oct 2016 14:21
Last Modified: 06 Sep 2023 09:48
URI: https://eref.uni-bayreuth.de/id/eprint/35020