Global sourcing, productivity and export intensity
Roger Bandick ()
The World Economy, 2020, vol. 43, issue 3, 615-643
This paper investigates the effect of global sourcing on firm performances by using data on Danish manufacturing firms during the period 1995–2006. The results show that firms with better ex‐ante characteristics are more inclined to source intermediate inputs from abroad. The results also show that firms that source from different locations possess different ex‐ante characteristics; the most productive source inputs from high‐wage countries while capital stock and being an exporter are more important factors when sourcing from low‐wage countries. Moreover, controlling for the endogeneity of both the sourcing decision and location by using instrument variable and DiD matching approach, the results seem also to suggest that firms that source inputs from high‐wage countries benefited from doing so in terms of higher growth of productivity and export intensity. Firms that source inputs from low‐wage countries, on the other hand, seem not to have experienced any significant impact on neither productivity nor export, not even three years after they started to source inputs from these countries.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:worlde:v:43:y:2020:i:3:p:615-643
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0378-5920
Access Statistics for this article
The World Economy is currently edited by David Greenaway
More articles in The World Economy from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().