Innovation offshoring and reshoring with fully endogenous growth.
This paper studies the implications of innovation offshoring and reshoring for long‐run productivity growth in a North–South framework that features a tension in the firm‐level innovation location decision between accessing technical knowledge in an asset‐wealthy country and sourcing low‐cost high‐s...
| Publicado en: | Southern Economic Journal Vol. 90; no. 1; pp. 90 - 121 |
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| Autores principales: | , |
| Formato: | Artículo |
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Wiley-Blackwell
Jul2023
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| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=164655885&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 164655885 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00384038 SEJ jtl: Southern Economic Journal issn: 00384038 maglogo: N pubinfo: dt: Jul2023 vid: 90 iid: 1 pid: 480 pub: Wiley-Blackwell artinfo: ui: 164655885 10.1002/soej.12637 ppf: 90 ppct: 31 formats: fmt: – @attributes: type: T – @attributes: type: C – @attributes: type: P size: 3.2MB tig: atl: Innovation offshoring and reshoring with fully endogenous growth. aug: au: Davis, Colin Hashimoto, Ken‐ichi affil: The Institute for the Liberal Arts, Doshisha University, Kyoto, Japan Graduate School of Economics, Kobe University, Kobe, Japan su: Labor productivity Offshore outsourcing Wage increases Innovations in business Location marketing Productivity accounting Industrial location Absorptive capacity (Economics) sug: subj: Labor productivity Offshore outsourcing Wage increases Innovations in business Location marketing Productivity accounting Industrial location Absorptive capacity (Economics) keyword: endogenous productivity growth industry location innovation offshoring and reshoring international knowledge diffusion process innovation endogenous productivity growth industry location innovation offshoring and reshoring international knowledge diffusion process innovation ab: This paper studies the implications of innovation offshoring and reshoring for long‐run productivity growth in a North–South framework that features a tension in the firm‐level innovation location decision between accessing technical knowledge in an asset‐wealthy country and sourcing low‐cost high‐skilled labor in an asset‐poor country. We show that, with trade costs and imperfect international knowledge diffusion, industry and innovation tend to concentrate geographically in proximity to the larger market of the asset‐wealthy North when trade costs are high. Investigating the effects of greater economic integration, we find that an improvement in knowledge diffusion increases the share of firms offshoring innovation to the asset‐poor South to take advantage of lower high‐skilled wages, potentially raising the rate of productivity growth. A decrease in trade costs, however, induces firms to reshore innovation to the asset‐wealthy North to take advantage of greater knowledge spillovers, with rising high‐skilled wages potentially lowering the productivity growth rate. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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