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de Mello-Sampayo, F., de Sousa-Vale, S. & Camões, F. (2010). Delaying the timing of offshoring low-skilled tasks. Economic Modelling. 27 (5), 951-958
F. D. Sampayo et al., "Delaying the timing of offshoring low-skilled tasks", in Economic Modelling, vol. 27, no. 5, pp. 951-958, 2010
@article{sampayo2010_1732203559940, author = "de Mello-Sampayo, F. and de Sousa-Vale, S. and Camões, F.", title = "Delaying the timing of offshoring low-skilled tasks", journal = "Economic Modelling", year = "2010", volume = "27", number = "5", doi = "10.1016/j.econmod.2010.05.006", pages = "951-958", url = "http://www.sciencedirect.com/science/article/pii/S0264999310000854" }
TY - JOUR TI - Delaying the timing of offshoring low-skilled tasks T2 - Economic Modelling VL - 27 IS - 5 AU - de Mello-Sampayo, F. AU - de Sousa-Vale, S. AU - Camões, F. PY - 2010 SP - 951-958 SN - 0264-9993 DO - 10.1016/j.econmod.2010.05.006 UR - http://www.sciencedirect.com/science/article/pii/S0264999310000854 AB - This paper examines the impact of uncertainty on offshoring low-skilled tasks. The model shows that greater demand uncertainty adversely affects the expected profit and timing of offshoring. It is also shown that a home-country tax rate deduction increases the volatility of the expected profits, making offshoring appear to be more risky. One policy implication of our results is that, in order to delay relocation of MNE's production from the home country, a government should adopt tax rate deduction rather than a direct subsidy because the former is more economical and effective than the latter. ER -