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Web use and offshoring

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Author Info

  • Aoife Hanley
  • Ingrid Ott

Abstract

Formulating 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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File URL: http://www.ifw-members.ifw-kiel.de/publications/web-use-and-offshoring/kwp_1537.pdf
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Bibliographic Info

Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1537.

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Length: 34 pages
Date of creation: Jul 2009
Date of revision:
Handle: RePEc:kie:kieliw:1537

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Related research

Keywords: Offshoring; heterogeneous inputs; uncertainty; price; transportation costs;

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Cited by:
  1. 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.

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