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Peripheral Tasks Are Offshored

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  • Fumio Dei

Abstract

I build a model in which an offshoring firm has a core task and a peripheral task. This study demonstrates that in a world composed of the North and the South, the peripheral task is offshored but the core task is not. The study also demonstrates that offshoring does not occur if the skill level of the southern workers is too low.

Suggested Citation

  • Fumio Dei, 2010. "Peripheral Tasks Are Offshored," Review of International Economics, Wiley Blackwell, vol. 18(5), pages 807-817, November.
    • Handle: RePEc:bla:reviec:v:18:y:2010:i:5:p:807-817
    DOI: 10.1111/j.1467-9396.2010.00892.x
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    References listed on IDEAS

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    10. Gene M. Grossman & Esteban Rossi-Hansberg, 2008. "Trading Tasks: A Simple Theory of Offshoring," American Economic Review, American Economic Association, vol. 98(5), pages 1978-1997, December.
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    Cited by:

    1. Wanida Ngienthi, 2013. "Offshoring Prompts High Quality Labour Markets," Pacific Economic Review, Wiley Blackwell, vol. 18(5), pages 628-643, December.
    2. Eric W. Bond & Yan Ma, 2013. "Learning by Doing and Fragmentation," Pacific Economic Review, Wiley Blackwell, vol. 18(5), pages 603-627, December.
    3. Wanida Ngienthi & Yan Ma & Fumio Dei, 2013. "Supermodularity and Global Supply Chains without the South," Review of International Economics, Wiley Blackwell, vol. 21(3), pages 562-567, August.

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