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Recent contributions on offshoring often assume that firms can freely split their production process into separate steps which can be ranked according to the cost savings from producing abroad. We replace this assumption by the notion of a technologically determined sequence of production steps....
Persistent link: https://www.econbiz.de/10005196266
This paper intends to combine two fields in the economic literature by examining empirically the FDI pattern –horizontal versus vertical– within the European Union and the relevance of trade integration as a potential determinant of investment flows over the period 1995-2009. We capture...
Persistent link: https://www.econbiz.de/10010790167
The fragmentation of production across borders allows firms to make and export final goods, or to perform only intermediate stages of production by processing imported inputs for re-exporting. We examine how financial frictions affect companies' choice between processing and ordinary trade –...
Persistent link: https://www.econbiz.de/10012994784
With the availability of international value added trade data it has become evident that gross export data and value added data do not provide the same information. Although gross exports crosses national borders and is the target of trade policy, value added data tell us what fragment in the...
Persistent link: https://www.econbiz.de/10013023177
This paper intends to combine two fields in the economic literature by examining empirically the FDI pattern – horizontal versus vertical – within the European Union and the relevance of trade integration as a potential determinant of investment flows over the period 1995-2009. We capture...
Persistent link: https://www.econbiz.de/10013051267
We present a heterogeneous-firm model in which management ability increases both pro- duction efficiency and product quality. Combining six micro-datasets on management practices, production and trade in Chinese and American firms, we find broad support for the model's predictions. First, better...
Persistent link: https://www.econbiz.de/10012898431
into their direct (endowment accumulation, productivity growth, changes in trade costs, changing preferences) and indirect … productivity growth, and endogenous changes in expenditures shares on manufacturing goods and services. We quantify the importance … accumulation and trade costs have been the most important drivers of trade in the sample at hand, whereas productivity growth and …
Persistent link: https://www.econbiz.de/10012994081
Why is it that exporter productivity premia (EPP) differ so widely in size? We take this question to the theory and to … EPPs across sectors, and hence across countries, can be explained by the variation in productivity dispersion, trade costs …
Persistent link: https://www.econbiz.de/10013057657
We investigate the link between productivity of firms and their sourcing behavior. Following Antràs & Helpman (2004) we … distinguish between domestic and foreign sourcing, as well as between outsourcing and vertical integration. A firm’s choice is … productivity premia associated with the different sourcing strategies. We find strong empirical support for the predictions of the …
Persistent link: https://www.econbiz.de/10008572568
Recent contributions on off shoring often assume that firms can freely split their production process into separate steps which can be ranked according to the cost savings from producing abroad. We replace this assumption by the notion of a technologically determined sequence of production...
Persistent link: https://www.econbiz.de/10012764740