Advanced Search
MyIDEAS: Login

On the Relationship between International Outsourcing and Price--Cost Margins in European Industries

Contents:

Author Info

  • Hartmut Egger

    ()
    (Socioeconomic Institute, University of Zurich, Zurichbergstr. 14, 8032 Zurich, Switzerland. Tel.: +41-1-634-2303; Fax: +41-1-634-4996)

  • Peter Egger

Abstract

This paper sets up a model, where multinationals compete in quantities and domestic firms form a competitive fringe. Within this framework, we analyse the relationship between market concentration, international outsourcing and the industry price-cost margin. The empirical results of a panel of 66 industries and the EU12 countries in the 1990s strongly confirm our theoretical hypotheses. Market concentration and international outsourcing are positively related to industry price--cost margins. In a thought experiment, we show that industry price--cost margins would have decreased by 0.4 percentage points more in the 1990s, if international outsourcing had not changed since 1990. In addition, international outsourcing accounts for a convergence in margins across industries in the last decade.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://journals.kluweronline.com/issn/0889-938X/contents
Download Restriction: no

Bibliographic Info

Article provided by Springer in its journal Review of Industrial Organization.

Volume (Year): 25 (2004)
Issue (Month): 1 (08)
Pages: 45-69

as in new window
Handle: RePEc:kap:revind:v:25:y:2004:i:1:p:45-69

Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100336

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Fabrice Defever, 2011. "Incomplete Contracts and the Impact of Globalization on Consumer Welfare," CEP Discussion Papers dp1057, Centre for Economic Performance, LSE.
  2. Moreno, L & Rodríguez, D, 2010. "Markups, bargaining power and offshoring: an empirical assessment," MPRA Paper 23587, University Library of Munich, Germany.
  3. Michael Hübler, 2007. "A Simple Model of Outsourcing with Cournot Competition," Kiel Working Papers 1320, Kiel Institute for the World Economy.
  4. Silvia Rocha-Akis & Ronnie Schöb, 2010. "Welfare Policy in the Presence of Unionised Labour and Internationally Mobile Firms," CESifo Working Paper Series 3032, CESifo Group Munich.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:kap:revind:v:25:y:2004:i:1:p:45-69. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.