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International industry migration and firm characteristics: some evidence from the analysis of firm data

Author

Listed:
  • Àngels Pelegrín Solé

    (Universitat de Barcelona & IEB)

  • Catalina Bolance Losilla

    (Universitat de Barcelona)

Abstract

This article examines firm characteristics associated with the probability of relocating part of the activity in a foreign country. Using manufacturing firms’ micro data for the 1999-2005 period, we find evidence that cost-cutting objectives are the main determinants for offshoring production, that firms with lower profits are more likely to undertake in-house offshoring, and that imports from low-wage countries increase the likelihood that part of the activity will be relocated. We also find that most offshoring firms are foreign – nearly 76% of the total.

Suggested Citation

  • Àngels Pelegrín Solé & Catalina Bolance Losilla, 2010. "International industry migration and firm characteristics: some evidence from the analysis of firm data," Working Papers 2010/20, Institut d'Economia de Barcelona (IEB).
    • Handle: RePEc:ieb:wpaper:doc2010-20
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    References listed on IDEAS

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    More about this item

    Keywords

    Offshoring; offshoring determinants; manufacturing firms; firm micro data;
    All these keywords.

    JEL classification:

    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory

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