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The Economics of Outsourcing: How Should Policy Respond?

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  • Thomas I. Palley

Abstract

According to Research Associate Thomas A. Palley, global outsourcing represents a new economic challenge that calls for a new set of institutions. In this brief, he expands upon the problems of offshore outsourcing as outlined in Public Policy Brief no. 86 and focuses on the microeconomic foundations. He argues that outsourcing is a central element of globalization that is best understood as a new form of competition. Palley urges policymakers to understand the economic basis of outsourcing in order to develop effective policies, and suggests that they focus on enhancing national competitiveness and establishing new rules that govern the nature of global competition.

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  • Thomas I. Palley, 2007. "The Economics of Outsourcing: How Should Policy Respond?," Economics Public Policy Brief Archive ppb_89, Levy Economics Institute.
    • Handle: RePEc:lev:levppb:ppb_89
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    5. Gregory Mankiw, N. & Swagel, Phillip, 2006. "The politics and economics of offshore outsourcing," Journal of Monetary Economics, Elsevier, vol. 53(5), pages 1027-1056, July.
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    8. Thomas I. Palley, 2006. "The Causes of High Unemployment: Labour-Market Sclerosis v. Macroeconomic Policy," Palgrave Macmillan Books, in: Eckhard Hein & Arne Heise & Achim Truger (ed.), Wages, Employment, Distribution and Growth, chapter 2, pages 20-48, Palgrave Macmillan.
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    Cited by:

    1. Thomas I. Palley, 2006. "Rethinking Trade and Trade Policy: Gomory, Baumol, and Samuelson on Comparative Advantage," Economics Public Policy Brief Archive ppb_86, Levy Economics Institute.
    2. Thomas I. Palley, 2009. "Rethinking the economics of capital mobility and capital controls," Brazilian Journal of Political Economy, Center of Political Economy, vol. 29(3), pages 15-34.
    3. Thomas I. Palley, 2007. "Globalization and the Changing Trade Debate: Suggestions for a New Agenda," Economics Public Policy Brief Archive ppb_91, Levy Economics Institute.

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