Investment Products Research Articles

SUSTAINABILITY ISSUES OF FOREIGN DIRECT INVESTMENTS IN AZERBAIJAN: IN TERMS OF DIVERSIFICATION

This research aims to analyze the correlations between the inflow of foreign direct investment and several macroeconomic factors in Azerbaijan. In order to examine the relationship between macroeconomic factors such as gross domestic product, export, import, and foreign direct investment outflow on foreign direct investment inflows, a multiple regression model was used. The study focused on the time period from the fourth quarter of 2010 to the fourth quarter of 2022. The study's results indicate that gross domestic product, imports, and outflow of foreign direct investment have a positive impact on foreign direct investment inflows. Conversely, exports have a negative impact on foreign direct investment inflows.

Critical Indicators on Macro Economics adoption in GDP: A systematic review

The study's goal is to investigate how important macroeconomic factors affect certain African nations. These metrics are crucial for the economies' effective development and can be utilized to address the many economic issues that the chosen countries are currently dealing with. 91 publications published between 2004 and 2022 were examined using the Scopus database. With an emphasis on five major factors: Growth Domestic Product (GDP), Interest Rate, Exchange Rate, Inflation, and Foreign Direct Investment this study evaluated and analyzed the literary elements and themes explored in order to give guidance for future research. The findings revealed that Interest rates, inflation, exchange rates, and foreign direct investment (FDI) are some of the macroeconomic variables that can affect the selected African economies. Foreign direct investment has been identified as the most important factor in improving industrial prosperity and living standards in developing economies such as Nigeria, South Africa, Egypt, Algeria, and Morocco after stabilizing interest rates, inflation and currency exchange rates. The study's findings are supported by material that has been published in previous years. Given that a number of recent economic issues have had an impact on the expansion of the economy, it is necessary to evaluate the ideas using panel data from the past 20 years in order to ascertain whether they are still valid. The report highlights the key macroeconomic factors that may have an impact on five different African economies. The study combines a number of economic metrics that have previously been studied separately to assess the trend in the economies it has chosen. To the best of my knowledge, this study is one of the few that evaluates both the individual countries used and the indicators in general.

Identification of transport and technological problems in the grain product subcomplex

The study focuses on the grain-product subcomplex within the Republic of Kazakhstan, aiming to dissect and address the prevalent issues plaguing this sector. It identifies several challenges, including technological deficiencies, inefficiencies, and increased production risks. There was a notable decrease in fixed capital investment in the agricultural sector in 2023, suggesting a shift in investment strategies or priorities, particularly with a significant reduction in food production investments. Agricultural exports in 2023, while showing a decrease compared to 2022, still represent a substantial economic activity. The capacity and utilization of grain storage facilities indicate a robust infrastructure capable of supporting the nation's grain production, with a considerable portion of storage capacity currently utilized and a significant amount of grain released in 2023. Furthermore, the research delves into cross-border rail transport of crops, with Uzbekistan emerging as a regional leader in exports. This analysis, along with the examination of export activities and grain storage capacities, emphasizes the role of innovation and technological advancements in enhancing the agroindustrial sector's efficiency and competitiveness. Optimization methods for modeling transport processes in agribusiness, such as digital technologies and intermodal transport, are proposed to address existing shortcomings. The study's findings are distinguished by their complex approach to addressing the problems within the grain-product subcomplex. This approach, highlighting the practical application under local conditions, makes the results uniquely tailored to Kazakhstan's context, offering a pathway towards improved agricultural practices and sectoral growth

Analysis of Financial Literacy, Financial Inclusion and Mental Accounting on Investment Decisions of The Millenial Generation in Surabaya

There are several factors that influence investment decision making, one of which is the psychology of the millennial generation in Surabaya in making investment decisions. The basis for making investment decisions consists of rate of return, risk and time period. Investment decisions are steps taken by individuals to place their funds in the hope of obtaining a rate of return in the future. This cannot be separated from the influence of financial literacy, financial inclusion and accounting mentality. This research aims to analyze the influence of financial literacy, financial inclusion and mental accounting on investment decisions of the millennial generation in Surabaya. This research method uses quantitative methods. The instrument used was a questionnaire. The data used is data from 152 millennial generation respondents in Surabaya and the data was analyzed using the Partial Least Square-Structural Equation Modeling (PLS-SEM) method. The research results show that financial literacy, financial inclusion and mental accounting have a significant positive effect on the investment decisions of the millennial generation in Surabaya. The contribution of this research in the future can provide an overview of investment products for the millennial generation in Surabaya in making investment decisions related to the level of financial literacy, financial inclusion and mental accounting in the post-pandemic era.

Adoption patterns of profit-sharing based deposits: empirical evidence from a Muslim majority country

Purpose This paper aims to examine the antecedents of adoption intention of profit-sharing investment deposits (PSID) among Moroccan customers. Design/methodology/approach Applying an extended version of diffusion of innovation (DOI) theory and using a non-probability sampling technique with convenience approach, a quantitative survey was developed and administered to 171 Islamic banking users. Structural equation modeling was then used to evaluate the significance of relationships between the various variables under study using SPSS 21.0 and AMOS 26.0 statistical packages. Findings Empirical findings of the structural analysis indicated a significant direct relationship between adoption intention and six out of seven variables: perceived relative advantage, perceived compatibility, perceived complexity, perceived risk, religiosity and social influence, all of which had a significant effect on Moroccan customers’ intention to invest their funds in profit-sharing based deposit instruments, whereas customer awareness exerted an insignificant positive effect. Research limitations/implications The absence of a longitudinal study tracking the actual adoption behavior is the main limitation of this study. Furthermore, data were collected solely from Islamic banking users. Finally, despite being insightful, the empirical findings should be generalized with caution since the sample was purposely selected by the banks’ management. Practical implications This study implied that participatory banks should pay substantial attention to risk perceptions, as PSID adoption intention is typically inhibited by high perceived risks associated with these products. Moreover, this study provides great indications to Moroccan regulators and policymakers on a number of issues related to this emerging business. Originality/value To the best of the authors’ knowledge, this paper represents the first attempt to confirm the effectiveness of the Rogers’ DOI in examining the intention to adopt a financial innovation in the Moroccan context. It is also the first of its kind to address customers’ apprehensions regarding profit-sharing investment products.

Bangladesh's Climate Vulnerability and Overseas Migration: Navigating Challenges and Paving the Way Forward

Bangladesh ranks seventh on the Global Climate Risk Index 2021, which identifies the nations most susceptible to natural catastrophes, demonstrating how sensitive the country is to both climate change and natural disasters. Millions of people are forced to migrate to neighboring cities and urban areas in search of work and a living each year as a result of climate change and natural disasters such as river bank erosion, salinity intrusion, floods, cyclones, and landslides in Bhola, Khulna, Bagerhat, Patuakhali, and Gaibandha. Urban life is strained by this influx, especially in terms of housing, water supply, and sanitation. Many of these individuals also seek overseas employment as a means of survival. While numerous organizations, including government institutions, are working to promote safe and regular international migration and overseas employment, a portion of these individuals fall prey to labor trafficking due to a lack of information, monitoring, and services from the administration. Additionally, communities in climate-risk areas are ultimately forced to choose between internal and international migration due to the sluggish adoption of climate-resilient agricultural methods and technologies, as well as the dearth of technical and vocational education options. For these regions of significant natural disasters and climate change, the government has to provide more secure migration policies and encourage productive remittance investment.

A Study on Assessing the Role of Financial Literacy in Stock Market Engagement

This article offers the results of an extensive study that examines the many elements that impact individuals' engagement in the stock market. The research investigates the factors contributing to the consistently low rates of involvement in the global equities market, with a specific focus on emerging nations such as India. These factors include consumer financial literacy, risk aversion, financial wellness, regulatory perception, social impact, and investing difficulties. The research uses qualitative interviews and literature review to generate conceptual models that introduce new dimensions of regulatory perception and investment difficulties. These models are subsequently confirmed by quantitative research, drawing upon existing theories. The research provides significant contributions to policymakers, regulators, and investors by deepening comprehension of financial decision-making processes and cultivating a more knowledgeable investing environment. Key words: financial literacy, Risk avoidance, perception social influence Investment, hassles Emerging economies, Equity products Investment behaviour.

Exposure of an endangered seabird species to persistent organic pollutants: Assessing levels in blood and link with reproductive parameters

Ocean contamination, particularly from persistent organic pollutants (POPs), remains a significant threat to marine predators that occupy high trophic positions. Long-lived procellariform seabirds are apex predators in marine ecosystems and tend to accumulate contaminants. Prolonged exposure to pollutants negatively affects their fitness including reproductive success. Low breeding success may represent a hurdle for the restoration of small and endangered seabird populations, including several highly threatened gadfly petrels. Here we investigated the annual variation (2019 and 2022) in organochlorine pesticide (OCP), polychlorinated biphenyl ether (PCB), polybrominated diphenyl ether (PBDE), and polycyclic aromatic hydrocarbon (PAH) exposure in the endangered Bermuda petrel (Pterodroma cahow), and the relationship between female contaminant burden and breeding parameters. We found that petrels were exposed to a wide range of pollutants (33 out of 55 showed measurable levels) with PCBs dominating the blood contaminant profiles in both years. Only 9 compounds were detected in >50 % of the birds. Specifically, among OCPs, p, p’-DDE and hexaclorobenzene were the most frequently detected while fluorene and acenaphthene were the most common PAH. The concentrations of ∑5PCBs and ∑7POPs were higher in older birds. Furthermore, females with greater contaminant burdens laid eggs with a lower probability of hatching. However, female investment in egg production (size and volume) was unrelated to their blood contaminant load. Overall, this study highlights the presence of a wide range of contaminants in the petrel's food web, and it sheds light on the potential impact of chronic exposure to sub-lethal levels of PCBs on the breeding success of seabirds. We claim that toxicological testing should be a practice integrated in the management of seabirds, particularly of endangered species to monitor how past and present anthropogenic activities impact their conservation status.

Towards sustainable manufacturing: A comprehensive analysis of circular economy key performance indicators in the manufacturing industry

In the pursuit of sustainable development, the concept of Circular Economy (CE) has emerged as a transformative alternative to the traditional linear economic model characterized by take, make, use, and dispose practices. However, there is a growing recognition of the limitations of the linear economy in addressing contemporary global challenges, leading to a pressing need for a more regenerative approach. This study aims to explore and analyze Key Performance Indicators (KPIs) associated with the circular economy, particularly focusing on the manufacturing industry, to provide a valuable guide for enterprises looking to integrate CE principles effectively and reinforce sustainability. The novelty of this study lies in its comprehensive examination of KPIs that embrace sustainability's triple bottom lines - environmental, economic, and social dimensions. The systematic selection of relevant KPIs and the utilization of Social Network Analysis (SNA) to identify the most influential CE KPIs within the manufacturing industry add depth to the research. By identifying and upgrading significant KPIs representing various facets of CE development, this study contributes to a more meticulous understanding of how enterprises can measure their progress towards circularity. In each of the triple bottom lines of sustainability, five significant KPIs were recognized and upgraded to the second assessment process, where these 15 KPIs are analyzed using SNA to obtain 5 aggregated KPIs. The comprehensive analysis of the obtained fifteen KPIs culminates in aggregated CE indicators, primarily strategies and initiatives (SI), material efficiency (ME), productivity of remanufacturing (OR), technology investment (ROR), and eco-innovation (EI). The aggregated Key Performance Indicators (KPIs) displayed an extreme value of the weighted average index attributed to strategies and initiatives KPI with a value of 0.067. These aggregated KPIs provide a practical framework for manufacturers to assess and optimize their circular economy practices. It's essential to note that all binary values incorporated in the proposed approach are derived from an extensive literature review. These values may vary depending on the specific objectives of individual manufacturing firms or focus groups. As a result, the proposed approach is adaptable to diverse manufacturing industries, allowing customization to suit the unique input criteria of each firm or group. Significantly, the current work emphasizes the influential role of manufacturers in shaping a sustainable future in alignment with development goals.

GENERATIONAL INVESTMENT PATTERNS IN MUTUAL FUNDS: A COMPARATIVE STUDY OF GENERATION X AND MILLENNIALS

This Master’s thesis examines the investment patterns in mutual funds across two distinct generational cohorts: Generation X and Millennials. The primary aim of this study is to analyze and compare the investment behaviors and preferences between these two groups, focusing on factors such as risk tolerance, investment time horizon, and preferred fund types. Utilizing a mixed-methods approach that combines quantitative data analysis of investment portfolios with qualitative surveys and interviews, this research provides a comprehensive view of how generational differences influence investment decisions. The quantitative analysis involves a statistical examination of mutual fund holdings and transactions sourced from a proprietary database covering the period from 2010 to 2020. Meanwhile, the qualitative component features insights from over 200 individual interviews with representatives of each generation, supplemented by surveys to gauge attitudes towards various investment strategies and market outlooks. Initial findings suggest significant divergences in the investment strategies between Generation X and Millennials. Generation X investors tend to favor income-focused and balanced funds, displaying a preference for stability and long-term growth, influenced possibly by their proximity to retirement. In contrast, Millennials are more inclined towards equity-heavy portfolios and show a greater propensity for embracing emerging market funds and ESG (environmental, social, and governance) themed investments, driven by higher risk tolerance and a longer investment horizon. This thesis not only highlights the distinct investment preferences of these generations but also delves into the sociopolitical and economic factors that might influence these patterns. Furthermore, it discusses the implications of these generational differences for financial advisors, mutual fund managers, and policymakers. By identifying and understanding these generational investment behaviors, industry professionals can better tailor their approaches to meet the needs and preferences of each demographic group, enhancing client satisfaction and engagement. This comparative study contributes to the financial industry’s understanding of demographic shifts and their impacts on market trends, offering valuable insights for developing more targeted and effective investment products and strategies.

The emergence of Gaza as a provincial intellectual centre during the Mamluk period

Abstract During the Mamluk period (1260–1516), Gaza developed from a minor town into an important city in southern Bilād al-Shām, the capital of an administrative province. This prosperity was the product of substantial and continuous Mamluk investment in the town, the security and stability maintained by this regime, and Gaza's strategic location as the bridge connecting Egypt and Bilād al-Shām. This article will trace the concomitant development of Gaza as a provincial intellectual centre within this context. Combining narrative sources with epigraphic and material evidence, it will show how the growth of Gaza as an administrative centre instigated a flourishing—albeit modest—scholarly scene in the town, which, while strongly connected to and integrated with wider social and intellectual networks within the Sultanate, retained its unique character.

Saving and Credit Cooperatives Services and Socio-economic Empowerment of Women in Temeke Municipality, Tanzania

The majority of the SACCOS clientele consists of low-income women who form solidarity groups to obtain credit. However, poverty has persisted among women and their communities for a very long time. This study assessed the financial services that SACCOS offer to women and the impacts that SACCOS have on women's empowerment and household livelihoods in Temeke Municipality, Tanzania. Focus group discussions (FGDs) and key informant interviews (KIIs) were used in a qualitative research design to gather primary data from female members of the selected SACCOS (Mbagala Lutheran and KIUMA) on the research issue. The survey found that women use SACCOS for a wide range of services, such as savings accounts, low-cost loans, options for investing and financial advisory services. Additionally, the study revealed that SACCOS have both non-financial and financial impacts on women's empowerment and household livelihoods, including greater financial security through saving and insurance products, strengthening of financial literacy and decision-making skills among women, empowerment through participation in SACCOS leadership and decision-making, business development through access to capital and credits from SACCOS, and enhanced household ability to meet basic and material needs. This study concludes that it is through its services that SACCOS is an instrumental entity in addressing the financial inclusion gap, especially for women in Tanzania. Moreover, it is recommended based on this study that, apart from mere financial services, SACCOS and other microfinance institutions should invest in education and financial advisory services to assist women in making wise financial decisions, such as budgeting and making productive investments of capital. This is because women save more in SACCOS; however, a large number of them have continuously been trapped in a vicious cycle of financial debt, poverty, and dependency syndrome

Evaluating the Bibit App: The HEART Framework Approach in UX Design

With the rise of investment applications like Bibit in Indonesia, evaluating user experience is crucial to improve user engagement and satisfaction. This study aims to assess the Bibit app user experience using the HEART framework to identify areas for improvement. A descriptive survey was conducted using the Slovin method to determine a sample size of approximately 100 people. The study used a questionnaire distributed through Google Forms that measures the five aspects of the HEART framework on a Likert scale. Data were analyzed for validity and reliability using IBM SPSS and stored in Google Spreadsheets. Overall, the Bibit app demonstrated high satisfaction, engagement, adoption, retention, and task success among its users, with most categories scoring above the 80% target. However, specific areas, particularly Happiness 2, Adoption 1, Retention 1, and Task Success 3, require further development attention. The Bibit app provides a generally satisfying user experience, with significant potential for improvement in navigation tooltips, investment product development, and app speed and efficiency.

The impact of brand equity on profit premium in an equilibrium framework

AbstractRecent research extends the estimation and analysis of structural demand and supply models to consider the concepts of brand equity and brand value and their role in product investment decisions. In this paper, we analyze data from the Dutch market for new cars to show that differences in brand equity may also entail significant differences in marginal costs. Next, we illustrate that ignoring the role of brand equity in marginal costs, as the existing literature has, ignores the possibility that investments in brand equity may actually reduce the marginal profits for the offering. This can change investment incentives and produce different market structures.

Acclimation of key photosynthetic traits drives edible biomass increases in crop species grown in aquaponics

Sustainable agriculture practices may contribute to increasing food demand while alleviating issues with fertilizer over-use and water availability in traditional agriculture. Aquaponics systems provide plants with a constant supply of nutrient dense water from fish efflux. Root uptake filters the fish efflux and water is recycled back to fish tanks, reducing the water needed to produce both plants and fish. Plants acclimate their physiology and anatomy to changing environments, yet, the degree of acclimation in aquaponics is unknown. We tested if acclimation of leaf physiology and anatomy to constant water and nutrient supply in aquaponics affected edible yield. We measured acclimation of leaf gas exchange (Asat, gsw), photosynthetic capacity (Jmax,Vcmax), stomatal density and chlorophyll production by comparing plants grown in aquaponics or soil for three species: Lactuca sativa (Romaine lettuce), Triticum aestivum (Winter Wheat), and Ocimum basilicum (Basil). We hypothesized that non-limiting nitrogen supply in aquaponics would drive increased production of chlorophyll, increasing electron transport rate (Jmax) and carboxylation rate (Vcmax). Additionally, constant water supply in aquaponics would remove limitations driving stomatal closure, leading to higher photosynthesis rates. We found aquaponics plants produced more chlorophyll, driving increased photosynthetic capacity through higher Jmax and Vcmax. Additionally, aquaponics plants increased photosynthesis rates (Asat) via higher stomatal conductance (gsw) of fewer stomata. Acclimation of key photosynthetic traits in aquaponics plants resulted in more edible biomass compared to soil grown plants, often with reduced investment in root production. Overall, aquaponics appears well suited to producing higher yields of certain crop species, while also reducing environmental impacts.

Factors Affecting Employment In Jakarta Indonesia After Transition From Education To The World Of Work

This study aims to analyze the effect of the number of labor force, gross regional domestic product, capital expenditure, and foreign investment on employment in DKI Jakarta Province. The method used in this study is the Error Correction Model (ECM). The data used in this study is time series data for the period 1990-2021. The results showed that in the long and short term the number of labor force, gross regional domestic product, and capital expenditure had a positive and significant effect on employment in DKI Jakarta Province. Meanwhile, foreign investment (FDI) has no influence on the absorption of labor in DKI Jakarta Province. The DKI Jakarta government must be selective and re-evaluate the existence of foreign investors because the results of this study show that foreign investment does not contribute to employment. This will hinder the alleviation of the problem of poverty, due to the insurmountable problem of unemployment in DKI Jakarta. The DKI Jakarta government must pay serious attention to the current dynamics of industrial supply and demand, so handling transitions from school to work requires innovation and collaboration that creates selected programs that are able to adapt quickly to changes in the world of work.

Economic Fundamentals and Real Exchange Rate in African Oil Producing Countries: Evidence from Asymmetric Cointegration

The role of exchange rates is very important in the international market and the variability of exchange rates both in the case of appreciation or depreciation is directly connected with the economic performance of a country. Exchange rate variations in oil-producing countries in Africa have been too high resulting in volatilities due to domestic and foreign shocks. High volatility of exchange rate may translate into reduction of trade flows, foreign direct investment, and instability in both interest rates and inflation rates. Several studies on the relationship between economic fundamentals and exchange rates focused more on Africa or country-specific with limited focus on African oil-producing countries using asymmetric cointegration. Therefore, this study examines the relationship between some economic fundamentals and real exchange rates in oil-producing countries in Africa. The dynamics panel non-linear autoregressive distributed lag and linear autoregressive distributed lag were used to investigate the relationship between economic fundamentals and real exchange rate (RER). The NARDL result shows evidence that there exists both short and long-run asymmetric relationship between economic fundamentals and RER. The study recommended that policymakers in these countries pay more attention to their macroeconomic policies to reduce the production and transaction costs of foreign direct investment (FDI).

Weather risk hedging mechanism for contract farming supply chain with weather-dependent yield

The stability of contract farming is challenged by the impact of disastrous weather on crop yield. Managing weather risks has become an unavoidable reality for participants in contract farming. In this regard, this paper focuses on investigating weather risk hedging mechanisms for contract farming supply chain in a Newsvendor setting. As a benchmark, we first consider the agricultural production investment decision under the inherent mechanism (i.e. protective price mechanism) of contract farming. Due to the inevitable reduction of farmers’ agricultural investment levels and performance loss caused by disastrous weather under this mechanism, we then systematically propose innovative weather risk hedging mechanisms based on the completeness of both internal risk–benefit sharing mechanism of contract farming in developing economies and its external financial derivatives market. We define them as the operational weather risk hedging (OWRH), financial weather risk hedging (FWRH), and combined weather risk hedging (CWRH) mechanisms, respectively. The research findings are as follows: (1) The OWRH mechanism overcomes the distortion of agricultural investment levels and fosters a community of shared risks and benefits among contract farming participants, to reach the equilibrium with higher profits. Nevertheless, it falls short of externalizing weather risks. (2) The FWRH mechanism transfers disastrous weather risks encountered by contract farming and reverses the trend of decreasing performance as the disastrous weather intensify, yet it fails to resolve the distortion of agricultural investment levels and the internal distribution of profits among stakeholders. (3) The CWRH mechanism mitigates the distortion of investment levels and the decline of contract farming’s performance caused by intensifying weather disaster, improving the anti-risk capacity of contact farming. But it does not always contribute to the optimal profits for contract farming participants, instead, this achievement is only attainable in the face of severe weather. Meanwhile, it imposes higher requirements on the financial environment in developing economies. Furthermore, we provide distinct applicability boundaries for these weather risk hedging mechanisms. The aim is to provide valuable insights into the management of disastrous weather risks faced during the production process of contract farming supply chain in various regions of developing economies.

What Is the Level of Savings Needed for High-Technology Export Led Growth?

High-tech export-led growth is an important determinant in terms of having a milestone feature for the level of development of countries. Although the restrictions arise from recent literature, it is obvious that countries, like Korea with 35.7% the high-technology product export ratio and China with 31.3%, that have set a strategy on the high-technology export-led growth could have managed to achieve what they aimed to have. It is obvious that to make any investment in high-technology products, a certain level of savings should be achieved. The purpose of this paper is to determine the savings level that is necessary for achieving a high-technology export level for economic growth. The motivation arises from the willingness to shed light on policymakers on their way to achieve the high-technology export-led growth. Sixteen countries with high-technology product export levels higher than the World’s average are chosen in order to test the HXT export-led growth strategy at the initial stage. The period of 2007–2020 has been chosen due to the availability of the data. After achieving the result that there is a bidirectional casualty relationship between HTX and economic growth, by using the threshold regression model it is concluded that after achieving the savings level of 38.73%, countries can create an increase in their HTX level. And this is a very important output for policymakers for setting their strategies for the high-technology export-led growth. Hence the main aim of the policymakers is to increase welfare level of citizens, they should aim to reach 38.73% in order to achieve the high-technology export-led growth. After reaching this savings level they will have a chance to make investments for producing high-technology products by routing their savings to research and development and getting patents. In this way, they will have a chance to increase the welfare levels with the HTX-led growth strategy.

A study of production outsourcing strategies of dual oligopoly manufacturers based on quality investments

Introduction: Self-production and outsourcing are two important production strategies for manufacturers, and the production capacity and investment capacity of manufacturers and suppliers play a decisive role in the quality of products. This study aims to analyze the manufacturer’s best production strategy and the drivers of outsourcing in the context of quality.Methods: This study constructs production outsourcing game models for duopoly manufacturers, examines the trade-offs between self-production and outsourcing when suppliers have the ability to invest in quality, explores the requirements and implications of outsourcing and compares the differences between “one-to-one” and “one-to-many” outsourcing structures.Results: First, outsourcing can reduce the level of product quality and that a necessary condition for manufacturers’ outsourcing is a strong advantage in the supplier’s production costs. Second, duopoly manufacturers may face a prisoner’s dilemma as a result of outsourcing. Finally, compared to two independent suppliers, outsourcing to a common supplier can increase the level of product quality by exploiting the centralization effect and increase the firm’s profits when the market’s competition intensity is low.Conclusion: First, the production strategy balance of duopoly manufacturers is closely related to the outsourcing structure, production efficiency and investment efficiency. Second, duopoly manufacturers choose outsourcing may fall into the prisoner’s dilemma, and outsourcing has the risk of quality reduction.