'Slicing the Value Chain' Internationally: Empirical Evidence on the Offshoring Strategy by French Firms
43 Pages Posted: 4 Mar 2008
Date Written: January 2008
Abstract
This paper analyzes the off-shoring strategy from an empirical view. It focuses on a set of models, extracts a set of testable hypothesizes and creates a suitable set of variable to test their validity. This analysis is based on a data set from French manufacturing firms that provides detailed information on the off-shoring strategy. The choice of off-shoring modes is investigated through the estimation of a multinomial logit model and associated to a set of explanatory variables at the firm, industry and country levels. Our results emphasize the role of firm heterogeneity, input specificity and of market thickness.
Keywords: Offshoring, Vertical FDI, Outsourcing, Firm Heterogeneity
JEL Classification: D23, F14, F23, L11
Suggested Citation: Suggested Citation
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