Economic Growth Implications Of Offshoring Among Fdi’s In Ghana: An Additive Fuzzy Integrals Approach

Abstract

In the past firms mostly focused on the cost aspect of offshore or reshore, giving less emphasis on
the other determinants of offshore or reshore decisions. Using non-additive fuzzy integrals, we
model and rank a collection of multi-factor criteria for offshore or reshore decision. Four
component factors classified as resource base, transaction cost, firm size and external factors were
analyzed and ranked. We observed that among these variables tested firm's resource base emerged
as the highest decision criterion for in offshore or reshore decision over transaction costs. This
implies that a firm's resources (FR), proxied by resource availability, innovative competence, share
risk/expertise and market penetration were more dominant that cost elements such as supplier
competition, reshoreer experience, volume uncertainty, production cost advantage and technology
uncertainty.