Abstract
This study analyses firms’ offshoring strategy from an empirical perspective. It focuses on market thickness, firm heterogeneity and the relative costs of organisation modes. This study focuses on a set of theoretical predictions and creates a set of suitable variables to test their validity. This analysis is based on a data set from French manufacturing firms that provides detailed information on their offshoring strategy. The choice of offshoring modes is investigated through the estimation of a multinomial logit model and related to a set of explanatory variables at firm, industry and country level. The results emphasise the role of firm heterogeneity, asset specificity and of market thickness.
Original language | English |
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Pages (from-to) | 1417-1447 |
Number of pages | 30 |
Journal | World Economy |
Volume | 35 |
Issue number | 11 |
Early online date | 27 Oct 2012 |
DOIs | |
Publication status | Published - Nov 2012 |