Global Sourcing: Evidence from Spanish Firm-Level Data

Wilhelm K. Kohler and Marcel Smolka
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Wilhelm K. Kohler: University of Tübingen Nauklerstraße 47, 72074 Tübingen, Germany

Chapter 4 in Quantitative Analysis of Newly Evolving Patterns of International Trade:Fragmentation, Offshoring of Activities, and Vertical Intra-Industry Trade, 2012, pp 139-193 from World Scientific Publishing Co. Pte. Ltd.

Abstract: AbstractWe investigate the link between productivity of firms and their sourcing behavior. Following Antràs and Helpman (2004) we distinguish between domestic and foreign sourcing, as well as between outsourcing and vertical integration. A firm's choice is driven by a hold-up problem caused by lack of enforceable contracts. We use Spanish firm-level data to examine the productivity premia associated with the different sourcing strategies. We find strong empirical support for the predictions of the model.

Keywords: International Trade; International Economics; Foreign Direct Investment; New Modes of Trade; Effects on Factor Markets and Welfare; Designing Trade Policies (search for similar items in EconPapers)
Date: 2012
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