Input Characteristics and the Mode of Offshoring: Evidence for French Firms

43 Pages Posted: 9 Nov 2010

See all articles by Liza Jabbour

Liza Jabbour

University of Birmingham

Richard Kneller

University of Nottingham

Date Written: November 8, 2010

Abstract

Using rich data on the international transactions of intermediate inputs by French firms we investigate the determinants of the choice between vertical integration and outsourcing at the international level. Our results show that the probability of vertical integration is reduced by the extent of asset specificity of imported inputs and enhanced by the significance of the inputs in the cost share of the firm. Our findings provide support for the property right models of offshoring and also for the knowledge capital model.

Keywords: Offshoring, Transaction Costs, Property Rights Theory, Knowledge-Capital

JEL Classification: D23, F14, L22, L23, L60

Suggested Citation

Jabbour, Liza and Kneller, Richard, Input Characteristics and the Mode of Offshoring: Evidence for French Firms (November 8, 2010). Available at SSRN: https://ssrn.com/abstract=1705307 or http://dx.doi.org/10.2139/ssrn.1705307

Liza Jabbour

University of Birmingham ( email )

Edgbaston, Birmingham B15 2TT
United Kingdom

Richard Kneller (Contact Author)

University of Nottingham ( email )

University Park
Nottingham, NG8 1BB
United Kingdom

Register to save articles to
your library

Register

Paper statistics

Downloads
33
Abstract Views
400
PlumX Metrics