文档介绍：CESPRICentro di Ricerca sui Processi di Innovazione e merciale “Luigi oni”Via R. Sarfatti, 25 – 20136 MilanoTel. 02 58363395/7 – fax 02 58363399 Altomonte, Chiara BonassiFDI,INTERNATIONAL OUTSOURCING AND LINKAGESWP n. 155April 2004Stampato in proprio da:merciale Luigi oni – CESPRI Via Sarfatti, 25 20136 MilanoAnno: 2004FDI, International Outsourcing and LinkagesCarlo Altomonte(Universit`oni)Chiara Bonassi(ISLA-Universit`oni)April 27, 2004AbstractWe investigate the trade-o?between FDI and international outsourcing of interme-diate inputs by a producer of a?nal good. To this extent, we characterize an industryequilibrium where?xed sunk costs exist for the setting up of foreign subsidiaries andthe latter are heterogeneous in productivity levels. We relate the resulting trade-o?be-tween outsourcing and FDI to the degree of pleteness prevailing in the hostcountry and explore its implications in terms of linkages existing between?nal producersand local suppliers. We?nd that an increase petition levels has a non-monotonice?ect on the pro?t of the local suppliers. Therefore, the host country has an incentiveto contrast the entry of new?nal producers with a reduction in the degree of classi?cation:F12,L22,D23Keywords: FDI, outsourcing, imperfect contracting, spillovers11 IntroductionIn the recent months the debate on the international outsourcing of economic activities hasbeen high on the agenda of policymakers. The story goes that it is no longer manufacturingthat is feeling the pressure of petition, but also jobs in the services sector are nowmigrating. Since services constitute the bulk of employment in a modern market economy,the fear arises of rising unemployment. The debate is particularly hot in the United States,where IT tasks are being outsourced to countries like China or India, and in the EuropeanUnion, where there are fears of job relocations taking place in the countries of Central andEastern Europe, now that they have acquired full