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Firm Heterogeneity in the Choice of Offshoring : Evidence from Korean Manufacturing Firms

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  • Hea-Jung Hyun

    (Korea Institute for International Economic Policy)

Abstract

Using firm-level data on offshoring of Korean manufacturers, the paper examines the relationship between firm heterogeneity and the probability of adopting offshoring. The results of the paper suggest that firm productivity may not be an important determinant for Korean firms offshoring decision. Firms global sourcing decision may rather depend on other characteristics such as factor intensity, R&D intensity, ICT level, and affiliation with foreign markets, when industry specificity is controlled for.

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Bibliographic Info

Paper provided by East Asian Bureau of Economic Research in its series Microeconomics Working Papers with number 22991.

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Date of creation: Jan 2009
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Handle: RePEc:eab:microe:22991

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Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
Web page: http://www.eaber.org
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Keywords: Offshoring; Outsourcing; Insourcing; Firm Heterogeneity.;

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References

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  1. Pol Antràs, 2003. "Incomplete Contracts and the Product Cycle," NBER Working Papers, National Bureau of Economic Research, Inc 9945, National Bureau of Economic Research, Inc.
  2. Pol Antràs & Luis Garicano & Esteban Rossi-Hansberg, 2006. "Offshoring in a Knowledge Economy," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 121(1), pages 31-77, 02.
  3. Antràs, Pol & Helpman, Elhanan, 2004. "Global Sourcing," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4170, C.E.P.R. Discussion Papers.
  4. Elhanan Helpman & Marc J. Melitz & Stephen R. Yeaple, 2004. "Export Versus FDI with Heterogeneous Firms," American Economic Review, American Economic Association, American Economic Association, vol. 94(1), pages 300-316, March.
  5. Laura Abramovsky & Rachel Griffith, 2005. "Outsourcing and offshoring of business services: how important is ICT?," IFS Working Papers, Institute for Fiscal Studies W05/22, Institute for Fiscal Studies.
  6. David Hummels & Jun Ishii & Kei-Mu Yi, 1999. "The nature and growth of vertical specialization in world trade," Staff Reports, Federal Reserve Bank of New York 72, Federal Reserve Bank of New York.
  7. Glass, Amy Jocelyn & Saggi, Kamal, 2001. "Innovation and wage effects of international outsourcing," European Economic Review, Elsevier, Elsevier, vol. 45(1), pages 67-86, January.
  8. repec:hrv:faseco:4784031 is not listed on IDEAS
  9. Tomiura, Eiichi, 2005. "Foreign outsourcing and firm-level characteristics: Evidence from Japanese manufacturers," Journal of the Japanese and International Economies, Elsevier, Elsevier, vol. 19(2), pages 255-271, June.
  10. repec:hrv:faseco:4784029 is not listed on IDEAS
  11. Baldwin, Richard & Okubo, Toshihiro, 2006. "Agglomeration, Offshoring and Heterogenous Firms," CEPR Discussion Papers, C.E.P.R. Discussion Papers 5663, C.E.P.R. Discussion Papers.
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Cited by:
  1. Rasel, Fabienne, 2012. "Offshoring and ICT: Evidence for German manufacturing and service firms," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 12-087, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  2. Andrea F. Presbitero & Matteo G. Richiardi & Alessia Amighini, 2012. "Is labor flexibility a substitute to offshoring? Evidence from Italian manafacturing," LABORatorio R. Revelli Working Papers Series, LABORatorio R. Revelli, Centre for Employment Studies 122, LABORatorio R. Revelli, Centre for Employment Studies.

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