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Global sourcing – a critical reconsideration of sector definitions

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  • Christian Schwarz

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    (University of Duisburg-Essen)

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    Abstract

    I introduce an alternative parameter-based definition of component- and headquarter-intensive sectors into the seminal model of global sourcing by Antràs and Helpman (2004, JPE). This approach overcomes problems of the original sector definition like counter intuitive classifications or industries that are not classified as either component- or headquarter-intensive. The strong empirical evidence for the model`s predictions is also based on a similar sector definition. With a numerical approach I show that a richer set of sourcing modes can arise in equilibrium. Nonetheless, the main results of Antràs and Helpman are robust.

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    File URL: http://www.accessecon.com/Pubs/EB/2011/Volume31/EB-11-V31-I1-P68.pdf
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    Bibliographic Info

    Article provided by AccessEcon in its journal Economics Bulletin.

    Volume (Year): 31 (2011)
    Issue (Month): 1 ()
    Pages: 708-713

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    Handle: RePEc:ebl:ecbull:eb-10-00572

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    Related research

    Keywords: Multinational firms; outsourcing; intra-firm trade; offshoring; vertical FDI;

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