"Slicing the Value Chain" Internationally: Empirical Evidence on the Offshoring Strategy by French Firms

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Authors

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.

Details

Original languageEnglish
Pages (from-to)1417-1447
Number of pages30
JournalWorld Economy
Volume35
Issue number11
Early online date27 Oct 2012
Publication statusPublished - Nov 2012