Outsourcing Versus FDI in Industry Equilibrium
研究需要专用组件的行业中，外包和外商直接投资的决定因素，分析成本差异、契约不完全性、行业规模和相对工资率如何影响产业组织。
We study the determinants of the extent of outsourcing and of direct foreign investment in an industry in which producers need specialized components. Potential suppliers must make a relationship-specific investment in order to serve each prospective customer. Such investments are governed by imperfect contracts. A final-good producer can manufacture components for itself, but the per-unit cost is higher than for specialized suppliers. We consider how the size of the cost differential, the extent of contractual incompleteness, the size of the industry, and the relative wage rate affect the organization of industry production.