Web use and offshoring
AbstractFormulating a model which summarises transportation costs, uncertainty and price, we describe how a switch to ICT procurement can impact more readily procured services rather than materials. Uncertainty represents a catch-all factor describing the dovetailing of operations between two neither culturally nor geographically proximate, independent firms. Using a 3-year panel, we find that ICT ‘switchers’ report increases in services offshored by between 1.9 and 1.6 percent. Uniquely, we also report a 2-3 percent reduction in the level of materials offshoring following a switch to internet procurement
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Bibliographic InfoPaper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1537.
Length: 34 pages
Date of creation: Jul 2009
Date of revision:
Offshoring; heterogeneous inputs; uncertainty; price; transportation costs;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-08-30 (All new papers)
- NEP-ICT-2009-08-30 (Information & Communication Technologies)
- NEP-INT-2009-08-30 (International Trade)
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- Kikuchi, Toru & Long, Ngo Van, 2010.
"A simple model of service offshoring with time zone differences,"
The North American Journal of Economics and Finance,
Elsevier, vol. 21(3), pages 217-227, December.
- Toru Kikuchi & Ngo Van Long, 2009. "A Simple Model of Service Offshoring with Time Zone Differences," Discussion Papers 0916, Graduate School of Economics, Kobe University.
- Toru Kikuchi & Ngo Van Long, 2010. "A Simple Model of Service Offshoring with Time Zone Differences," CESifo Working Paper Series 2990, CESifo Group Munich.
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