The Optimal Allocation of Ownership Right in Sequential Production Stage along the Global Value Chains

Liu, Yang (2017) The Optimal Allocation of Ownership Right in Sequential Production Stage along the Global Value Chains. Wuhan International Conference on e-Business.

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Abstract

In this document, we have developed a model to analyze the optimal allocation of ownership right in sequential production stage along the global value chains. We have shown that, when the demand elasticity is low (high) relative to the degree of substitution among inputs in sequential production, and the bargaining weight of firm is low (high), integration (outsourcing) is the optimal organizational structure. And when both the demand elasticity is high (low) relative to the degree of substitution among inputs and the bargaining weight of firm is low(high), the firm will find it optimal to outsource(integrate) relatively upstream inputs, while to integrate(outsource) relatively the most downstream inputs.

Item Type: Article
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Industrial Engineering and Informatics > Information System
Depositing User: staff repository 1
Date Deposited: 20 Aug 2018 17:52
Last Modified: 20 Aug 2018 17:52
URI: http://repository.ittelkom-pwt.ac.id/id/eprint/3877

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