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Outsourcing: a critique of the value-chain model

Author

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  • Shamsavari, Ali

    (Kingston University London)

Abstract

This paper examines the economics of outsourcing and its impact on home and host countries. It argues that some of the explanations for this phenomenon, particularly by management science are too simplistic. It is also shown how (with a brief study of the Mexican case) 'cheap labour' which is often the motivation given for outsourcing, far from being an original condition is itself a historical product of political and economic factors. It concludes by showing that increasingly outsourcing as well as innovation will be reversed and come back to the shores of the home countries.

Suggested Citation

  • Shamsavari, Ali, 2010. "Outsourcing: a critique of the value-chain model," Economics Discussion Papers 2010-3, School of Economics, Kingston University London.
    • Handle: RePEc:ris:kngedp:2010_003
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    File URL: http://eprints.kingston.ac.uk/16239/
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    More about this item

    Keywords

    outsourcing; off-shoring; value-chain; TNC; EDI; globally-integrated production; reverse outsourcing; reverse innovation;
    All these keywords.

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures

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