Foreign direct investments, international outsourcing and subcontracting: The underlying logics

Investissements directs étrangers, externalisation et sous-traitance internationales: Les logiques sous-jacentes

Riad Haddadi () and Slimane Merzoug
Additional contact information
Riad Haddadi: UB - Université Abderrahmane Mira [Université de Béjaïa] = University of Béjaïa = جامعة بجاية
Slimane Merzoug: UB - Université Abderrahmane Mira [Université de Béjaïa] = University of Béjaïa = جامعة بجاية

Post-Print from HAL

Abstract: In this paper, we put into perspective international outsourcing and subcontracting, as alternative strategies of firm internationalization. We also identify the trade-offs that allow the firm to choose between integration or outsourcing. Our main results show that if asset ownership is separable without the risk of losing its competitive advantage, the firm should opt for outsourcing through international subcontracting, provided that the transaction costs are lower than the control costs of a foreign subsidiary.

Keywords: Investissement direct étranger; Externalisation; Sous-traitance; Fragmentation de la production L23; F23 Foreign direct investment; Outsourcing; Subcontracting; Production fragmentation. JEL Classification Codes: L23; F23 Investissements directs étrangers; externalisation et sous-traitance internationales: Les logiques sous-jacentes (search for similar items in EconPapers)
Date: 2021-12-30
New Economics Papers: this item is included in nep-int
Note: View the original document on HAL open archive server: https://auf.hal.science/hal-03505960v1
References: Add references at CitEc
Citations:

Published in International Journal of Economic Performance - المجلة الدولية للأداء الاقتصادي, 2021, 04 (03)

Downloads: (external link)
https://auf.hal.science/hal-03505960v1/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03505960

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().