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Product Cycle, Contractibility and Global Sourcing

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

No 1604, Economic Growth Centre Working Paper Series from Nanyang Technological University, School of Social Sciences, Economic Growth Centre

Abstract: This paper examines the organization structure of global sourcing over the product cycle. The paper combines a new product list dataset and China's customs data. The analysis finds that multinationals first produce within their foreign subsidiaries, and when the product matures, they start to outsource their production to external foreign suppliers. Global outsourcing appears later along the product cycle when the contractibility is better.

Keywords: Global sourcing; 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)
Pages: 37 pages
Date: 2016-03
New Economics Papers: this item is included in nep-sea and nep-tra
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Journal Article: Product cycle, contractibility, and global sourcing (2017) Downloads
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