Growing Trade in Intermediate Goods: Outsourcing, Global Sourcing or Increasing Importance of MNE Networks?

Joern Kleinert ()

No 1006, Kiel Working Papers from Kiel Institute for the World Economy

Abstract: Trade in intermediate goods as one possible link between rising trade and foreign direct investment is examined. To explain growing intermediate goods trade, three hypotheses are brought forward: outsourcing, global sourcing and the increasing importance of MNE networks. These hypotheses are tested by employing a cross-section framework, which uses OECD input-output table data, and an analysis, which relies on German time-series data. Increasing importance of MNE networks is found to be a reason of growing trade in intermediate goods in the cross-section and the time-series framework. The evidence for outsourcing and global sourcing is found to be much weaker.

Keywords: Globalization; Intermediate Goods Trade; Outsourcing; Global Sourcing; Multinational Enterprise (search for similar items in EconPapers)
JEL-codes: F11 F21 F23 (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (9)

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Journal Article: Growing Trade in Intermediate Goods: Outsourcing, Global Sourcing, or Increasing Importance of MNE Networks? (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkwp:1006

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