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Product cycle, contractibility, and global sourcing

Xiaoping Chen (), Yi Lu () and Lianming Zhu

Journal of Development Economics, 2017, vol. 127, issue C, 283-296

Abstract: This paper examines the organizational structure of global sourcing over the product cycle. This paper combines a new product list data set with China's customs data. The analysis finds that multinationals first produce within their foreign subsidiaries. When the product matures, firms start to outsource their production to external foreign suppliers. International outsourcing appears earlier along the product cycle when contractibility is better.

Keywords: Global sourcing; Offshoring; Product cycle; Contractibility; Difference-in-difference-in-differences estimation (search for similar items in EconPapers)
JEL-codes: F12 F23 L23 D23 (search for similar items in EconPapers)
Date: 2017
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Handle: RePEc:eee:deveco:v:127:y:2017:i:c:p:283-296