Showing 1 - 10 of 101
We study how a preferential trade agreement (PTA) affects international sourcing decisions, aggregate productivity and … agreement incorporates “deep integration” provisions, it boosts trade flows, but not necessarily welfare. Rather, “deep …
Persistent link: https://www.econbiz.de/10012892256
Casual observation suggests that cultural differences play an important role in business transactions, yet systematic evidence on this relationship is scarce. This paper provides a novel investigation of the effect of cultural distance on multinational firms’ decisions to integrate their...
Persistent link: https://www.econbiz.de/10014346366
We use unique plant-level data to study the link between the local availability of services and the decision of manufacturing firms to source materials from abroad. To guide our empirical analysis we develop a monopolistic-competition model of the materials sourcing decisions of heterogeneous...
Persistent link: https://www.econbiz.de/10010277449
This paper develops and applies a test of the property rights theory of the firm in the context of global input sourcing. We use the model by Pol Antràs and Elhanan Helpman, “Global Sourcing," Journal of Political Economy, 112:3 (2004), 552-80, to derive a new prediction regarding how the...
Persistent link: https://www.econbiz.de/10011931964
identify the firms' dynamic trade-off when they decide on the offshoring location. We find supportive evidence for the model …
Persistent link: https://www.econbiz.de/10013470302
This paper investigates the role of firm productivity in drawing firm boundaries in global sourcing. Our analysis focuses on how productivity affects the allocation of ownership rights between the headquarter of a firm and an intermediate input supplier (vertical integration vs. outsourcing), as...
Persistent link: https://www.econbiz.de/10010480832
This paper studies how firms’ offshoring decisions shape a country’s domestic production net- works. We develop a model in which heterogeneous firms source inputs from multiple industries located in different domestic regions and foreign countries. Input sourcing entails communication with...
Persistent link: https://www.econbiz.de/10011744964
Service inputs are a key component of the costs of exporting, and contribute to explain the process of internationalization of firms. A new dataset on the participation of French firms in global value chains reveals that firms with longer export experience in a market are more likely to source...
Persistent link: https://www.econbiz.de/10012599213
market power. Two main results are shown. First, in the presence of buyer power trade liberalization may lead to retail … market concentration. Due to this concentration retail prices may be higher and welfare may be lower in free trade than in … autarky, thus reversing the standard effects of trade liberalization. Second, the pro-competitive effects of trade …
Persistent link: https://www.econbiz.de/10010276305
The object of this paper is to discuss on-line intermediation from the perspective of two-sided markets. It builds a simple model of the intermediation activity when trading partners are involved in a commercial relationship and uses it to illustrate some of the results that emerge in the...
Persistent link: https://www.econbiz.de/10010261092