Greasing the wheels of international commerce: how services facilitate firms' international sourcing

Peter Debaere, Holger Görg and Horst Raff

Canadian Journal of Economics, 2013, vol. 46, issue 1, 78-102

Abstract: We use plant-level data to study the link between the local availability of services and the decision of manufacturing firms to source materials from abroad. We develop a model to generate predictions about how the intensity of international sourcing of materials depends on the availability of services and firm characteristics. These predictions are supported by the data. Greater availability of services across regions, industries, and time increases firms' foreign sourcing of materials relative to sales. The impact of services differs by firm type. National firms' sourcing responds to changes in regional service conditions, whereas multinationals tend to be less affected.

JEL-codes: F12 L23 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (20)

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Related works:
Working Paper: Greasing the Wheels of International Commerce: How Services Facilitate Firms' International Sourcing (2010)
Working Paper: Greasing the Wheels of International Commerce: How Services Facilitate Firms' International Sourcing (2010)
Working Paper: Greasing the Wheels of International Commerce: How Services Facilitate Firms' International Sourcing (2010)
Working Paper: Greasing the Wheels of International Commerce: How Services Facilitate Firms’ International Sourcing (2010)
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