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

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  • Liza Jabbour
  • Richard Kneller

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.

Suggested Citation

  • Liza Jabbour & Richard Kneller, 2010. "Input Characteristics and the Mode of Offshoring: Evidence for French Firms," Discussion Papers 10/22, University of Nottingham, GEP.
    • Handle: RePEc:not:notgep:10/22
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    File URL: https://www.nottingham.ac.uk/gep/documents/papers/2010/10-22.pdf
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    1. Holger Görg & Aoife Hanley & Eric Strobl, 2008. "Productivity effects of international outsourcing: evidence from plant‐level data," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 41(2), pages 670-688, May.
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    Cited by:

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    2. Huanlang He & Zhihao Yu, 2015. "The evolving patterns of global production of multi‐product firms," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 48(3), pages 1175-1194, August.

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