Productivity, Size, and the Disintegration of Industrial Production
Jonas Gade Christensen ()
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Jonas Gade Christensen: University of Bergen, Postal: Department of Economics, Fosswinckelsgt. 14, 5007 Bergen, Norway, http://www.uib.no/econ
No 07/11, Working Papers in Economics from University of Bergen, Department of Economics
Abstract:
I develop a theoretical model of firms’sourcing decisions along the productivity dimension as in Antrás and Helpman (2004), while also incorporat- ing task trade as in Grossman and Rossi-Hansberg (2008). The combination of these two effects permits a framework for sourcing strategies along two dimensions, which generates results where firms spread the production process of the final good over several different sources simultaneously. While reproducing the results from the aforementioned models, my model contributes refined and more detailed predictions. Testing these on firm-level data for Spanish manufacturing firms, I find strong empirical support for the model's predictions.
Keywords: Outsourcing; Productivity; Production processes (search for similar items in EconPapers)
JEL-codes: F21 F23 L23 (search for similar items in EconPapers)
Pages: 142 pages
Date: 2011-02-02
New Economics Papers: this item is included in nep-bec and nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:bergec:2011_007
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