Outsourcing versus Integration at Home or Abroad
No 742, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area
Using data on a sample of Italian manufacturing companies, this paper analyzes the location (at home or abroad) and the mode of organization (outsourcing versus integration) of intermediate inputs production. We find evidence of a productivity ordering (largely consistent with the assumptions in Antrï¿½s and Helpman 2004) where foreign integration is chosen by the most productive and domestic outsourcing by the least productive firms; those with medium-high productivity choose domestic integration, those with medium-low productivity foreign outsourcing. We also find that the preference for integration over outsourcing is positively related to some indicators of headquarter intensity, notably capital intensity, as predicted by Antrï¿½s (2003) and Antrï¿½s and Helpman (2004).
Keywords: international outsourcing; foreign direct investment; intra-firm trade; productivity (search for similar items in EconPapers)
JEL-codes: F12 F23 L22 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-com, nep-eff and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (45) Track citations by RSS feed
Downloads: (external link)
http://www.bancaditalia.it/pubblicazioni/temi-disc ... 0742/en_tema_742.pdf (application/pdf)
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:bdi:wptemi:td_742_10
Access Statistics for this paper
More papers in Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area Contact information at EDIRC.
Bibliographic data for series maintained by ().