Outsourcing and pass-through

Rebecca Hellerstein and Sofia Villas-Boas

No 120490, CUDARE Working Papers from University of California, Berkeley, Department of Agricultural and Resource Economics

Abstract: A large share of international trade occurs through intra-firm transactions. We show that this common cross-border organization of the firm has implications for the well-documented incomplete transmission of shocks across such borders. We present new evidence of an inverse relationship between a firm’s outsourcing of inputs and its rate of exchange-rate pass-through. We then develop a structural econometric model with final assemblers and upstream parts suppliers to quantify how firms’ organization of their activities across national borders affects their pass-through behavior.

Keywords: Financial Economics; Industrial Organization (search for similar items in EconPapers)
Pages: 50
Date: 2010-02-26
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Citations: View citations in EconPapers (36)

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Related works:
Journal Article: Outsourcing and pass-through (2010)
Working Paper: Outsourcing and Pass-Through (2010)
Working Paper: Outsourcing and Pass-Through (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ucbecw:120490

DOI: 10.22004/ag.econ.120490

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