A New International Division Of Labor In Europe: Outsourcing And Offshoring To Eastern Europe

Topics:
Outsourced Services
Tags:
Business Operations,
Outsourcing & Subcontracting,
Outsourcing,
Offshoring,
Marketing Research,
Marketing,
It Operations,
Europe,
Eastern Europe,
University Of Mannheim
Source:
University of Mannheim

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Overview: Europe is reorganizing its international value chain. The author document these changes in Europe's international organization of production with new survey data of Austrian and German firms investing in Eastern Europe. He shows estimates of the share of intrafirm trade between Austria or Germany on the one hand and Eastern Europe on the other. Furthermore, the author presents empirical evidence of the drivers of the new division of labor in Europe. He finds among other things that falling trade costs and reduced levels of corruption as well as improvements in the contracting environment in Eastern Europe are affecting the level of intrafirm imports from that region. These factors also favor outsourcing over offshoring.

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Format: PDF | Size: 177KB | Date: Sep 2005 | Pages: 12

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