Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/32662
Title: International oligopoly, barriers to outsourcing and domestic employment
Authors: Bandyopadhyay, S
Marjit, S
Yang, L 
Issue Date: 2014
Publisher: Wiley-Blackwell
Source: Canadian journal of economics, 2014, v. 47, no. 4, p. 1372-1386 How to cite?
Journal: Canadian journal of economics 
Abstract: In this paper we analyze the impact of barriers to outsourcing on domestic employment in an oligopolistic context. We show that although an outsourcing tax makes domestic labour cheaper, its employment effect is ambiguous due to strategic considerations. Analyzing international policy interdependence, we also show that, although a unilateral tax (subsidy) by a country must raise its domestic employment, this may be counterproductive in a Nash policy equilibrium. Finally, both a credit crisis and increased product differentiation tend to worsen the employment effects of an outsourcing tax. Our central findings are robust to both Bertrand and Cournot modes of competition.
URI: http://hdl.handle.net/10397/32662
ISSN: 0008-4085
EISSN: 1540-5982
DOI: 10.1111/caje.12111
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