Foreign versus Domestic Outsourcing : Firm-level Evidence on the Role of Technology
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Abstract
type:postprint
The decision about where to outsource varies across firms and industries. General machinery heavily depends on domestic subcontractors, while outsourcing overseas is prevalent in apparel. Based on firm-level data explicitly distinguishing foreign outsourcing from domestic outsourcing in all manufacturing industries, this paper finds that firms tend to prefer domestic outsourcing to foreign outsourcing when they are R&D-intensive. This finding is consistent with incomplete contracting models, since technologically complex products are likely to require high-quality contracting environment and assembler-supplier proximity. This paper also finds that firms connected with computer networks are actively outsourcing.
Journal
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- International Review of Economics & Finance
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International Review of Economics & Finance 18 (2), 219-226, 2008
Elsevier
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Details 詳細情報について
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- CRID
- 1050564287801010560
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- NII Article ID
- 120001723293
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- NII Book ID
- AA10925966
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- ISSN
- 10590560
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- Web Site
- http://hdl.handle.net/10131/4081
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- Text Lang
- en
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- Article Type
- journal article
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- Data Source
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- IRDB
- CiNii Articles