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Foreign outsourcing and firm-level characteristics: evidence from Japanese manufacturers

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  • Eiichi Tomiura

Abstract

Based on micro data of 118,300 firms without firm-size thresholds covering all manufacturing industries in Japan, this paper investigates the foreign outsourcing, distinguished explicitly from domestic outsourcing, at the firm level. Less than three percent of the firms are outsourcing their production across national borders. The fixed entry cost for foreign outsourcing is significant and related with the firm's human skills and foreign business experience. The firms tend to outsource more of their activities overseas when their productivity is higher or when their products are more labor-intensive.

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File URL: http://hi-stat.ier.hit-u.ac.jp/research/discussion/2004/pdf/D04-64.pdf
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Bibliographic Info

Paper provided by Institute of Economic Research, Hitotsubashi University in its series Hi-Stat Discussion Paper Series with number d04-64.

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Date of creation: Dec 2004
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Handle: RePEc:hst:hstdps:d04-64

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Keywords: Foreign outsourcing; Firm-level data; Productivity; Capital-labor ratio;

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