This file is part of IDEAS , which uses RePEc data
[ Papers |
Articles |
Software |
Books |
Chapters |
Authors |
Institutions |
JEL Classification |
NEP reports |
Search |
New papers by email |
Author registration |
Rankings |
Volunteers |
FAQ |
Blog |
Help! ]
Offshoring as a Survival Strategy in Globalizing Industries: New Evidence from Belgian Manufacturing Author info | Abstract | Publisher info | Download info | Related research | Statistics Coucke, K.
Sleuwaegen, L. () (Vlerick Leuven Gent Management School)
This paper analyzes the impact of globalization on the exit behavior of manufacturing firms in one of the world’s most open economies: Belgium. We find that imports from low-wage countries exert a strong competitive effect that lowers a firm’s chances of survival. This competitive effect is found to arise mainly in industries where intra-industry trade, an indicator of product differentiation, is relatively low. As an offensive strategy to cope with the rising competitive pressure from imports, we find that firms exploiting opportunities afforded by globalization, in particular the off-shoring of activities, are able to improve their chances of survival. Making a distinction between domestic firms and subsidiaries of multinational firms, we also find that domestic firms face a higher risk of exit when multinational firms compete in their relevant input and output markets. Finally, we show that subsidiaries of multinational firms are better adapted to cope with globalization forces, and we find them to be less sensitive to domestic market conditions in the host country.
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
file . Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Paper provided by Vlerick Leuven Gent Management School in its series Vlerick Leuven Gent Management School Working Paper Series with number
2007-13.
Download reference. The following formats are available: HTML ,
plain text ,
BibTeX ,
RIS (EndNote),
ReDIF
Length: 41 pages
Date of creation: 23 Apr 2007Date of revision:
Handle: RePEc:vlg:vlgwps:2007-13Contact details of provider: Postal: Reep 1, 9000 Gent Phone: +32 9 210 98 99 Fax: +32 9 210 97 00 Email: Web page: http://www.vlerick.be More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Isabelle Vandenbroere).
Keywords: Exit Off-shoring Sourcing Globalization Other versions of this item:
Find related papers by JEL classification: F1 - International Economics - - Trade F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
This paper has been announced in the following NEP Reports :
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Mata, Jose & Portugal, Pedro, 1994.
"Life Duration of New Firms ,"
Journal of Industrial Economics ,
Blackwell Publishing, vol. 42(3), pages 227-45, September.
[Downloadable!] (restricted)
Görg, Holger & Strobl, Eric, 2002.
"Multinational Companies and Indigenous Development: An Empirical Analysis ,"
CEPR Discussion Papers
3325, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Other versions: Bernard, Andrew B. & Jensen, J. Bradford & Schott, Peter K., 2006.
"Trade costs, firms and productivity ,"
Journal of Monetary Economics ,
Elsevier, vol. 53(5), pages 917-937, July.
[Downloadable!] (restricted)
Lancaster, Kelvin, 1980.
"Intra-industry trade under perfect monopolistic competition ,"
Journal of International Economics ,
Elsevier, vol. 10(2), pages 151-175, May.
[Downloadable!] (restricted)
Audretsch, David B & Mahmood, Talat, 1995.
"New Firm Survival: New Results Using a Hazard Function ,"
The Review of Economics and Statistics ,
MIT Press, vol. 77(1), pages 97-103, February.
[Downloadable!] (restricted)
Mary Hallward-Driemeier & Giuseppe Iarossi & Kenneth L. Sokoloff, 2002.
"Exports and Manufacturing Productivity in East Asia: A Comparative Analysis with Firm-Level Data ,"
NBER Working Papers
8894, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Blomstrom, Magnus & Kokko, Ari, 1998.
" Multinational Corporations and Spillovers ,"
Journal of Economic Surveys ,
Blackwell Publishing, vol. 12(3), pages 247-77, July.
[Downloadable!] (restricted)
Other versions:
Blomström, Magnus & Kokko, Ari, 1996.
"Multinational Corporations and Spillovers ,"
Working Paper Series in Economics and Finance
99, Stockholm School of Economics.
Blomström, Magnus & Kokko, Ari, 1996.
"Multinational Corporations and Spillovers ,"
CEPR Discussion Papers
1365, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Veugelers, Reinhilde & Cassiman, Bruno, 2004.
"Foreign subsidiaries as a channel of international technology diffusion: Some direct firm level evidence from Belgium ,"
European Economic Review ,
Elsevier, vol. 48(2), pages 455-476, April.
[Downloadable!] (restricted)
Other versions: Bergstrand, Jeffrey H, 1990.
"The Heckscher-Ohlin-Samuelson Model, the Linder Hypothesis and the Determinants of Bilateral Intra-industry Trade ,"
Economic Journal ,
Royal Economic Society, vol. 100(403), pages 1216-29, December.
[Downloadable!] (restricted)
Paul Butzen & Catherine Fuss & Philip Vermeulen, 2002.
"The Interest Rate and Credit Channels in Belgium: An Investigation with Micro-level Firm Data ,"
Brussels Economic Review/Cahiers Economiques de Bruxelles ,
Editions du DULBEA, Université libre de Bruxelles, Department of Applied Economics (DULBEA), vol. 45(3), pages 5-35.
Other versions:
Paul Butzen & Catherine Fuss & Philip Vermeulen, 2001.
"The interest rate and credit channels in Belgium: an investigation with micro-level firm data ,"
Research series
2001-12, National Bank of Belgium.
[Downloadable!] Philip Vermeulen & Paul Butzen & Catherine Fuss & Patrick Sevestre & Andreas Worms, 2001.
"The interest rate and credit channels in Belgium: an investigation with micro-level firm data ,"
Working Paper Series
107, European Central Bank.
[Downloadable!] Butzen, Paul & Fuss, Catherine & Vermeulen, Philip, 2001.
"The interest rate and credit channels in Belgium: An investigation with micro-level firm data ,"
10th International Conference on Panel Data, Berlin, July 5-6, 2002
A3-1, International Conferences on Panel Data.
[Downloadable!] Brian J. Aitken & Ann E. Harrison, 1999.
"Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela ,"
American Economic Review ,
American Economic Association, vol. 89(3), pages 605-618, June.
[Downloadable!] (restricted)
Koen De Backer & Leo Sleuwaegen, 2003.
"Does Foreign Direct Investment Crowd Out Domestic Entrepreneurship? ,"
Review of Industrial Organization ,
Springer, vol. 22(1), pages 67-84, February.
[Downloadable!] (restricted)
Steven Globerman & John C. Ries & Ilan Vertinsky, 1994.
"The Economic Performance of Foreign Affiliates in Canada ,"
Canadian Journal of Economics ,
Canadian Economics Association, vol. 27(1), pages 143-56, February.
[Downloadable!] (restricted)
Blalock, Garrick & Gertler, Paul J., 2004.
"Learning from exporting revisited in a less developed setting ,"
Journal of Development Economics ,
Elsevier, vol. 75(2), pages 397-416, December.
[Downloadable!] (restricted)
Wiersema,Margarethe & Bowen, Harry P., 2005.
"Corporate international diversification: the impact of foreign competition, industry globalization and product diversification ,"
Vlerick Leuven Gent Management School Working Paper Series
2005-6, Vlerick Leuven Gent Management School.
[Downloadable!]
Timothy Dunne & Mark J. Roberts & Larry Samuelson, 1988.
"Patterns of Firm Entry and Exit in U.S. Manufacturing Industries ,"
RAND Journal of Economics ,
The RAND Corporation, vol. 19(4), pages 495-515, Winter.
[Downloadable!] (restricted)
Other versions: René Belderbos & Jianglei Zou, 2006.
"Foreign Investment, Divestment and Relocation by Japanese Electronics Firms in East Asia ,"
Asian Economic Journal ,
East Asian Economic Association, vol. 20(1), pages 1-27, 03.
[Downloadable!] (restricted)
James R. Tybout, 2001.
"Plant- and Firm-Level Evidence on "New" Trade Theories ,"
NBER Working Papers
8418, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Arnold, Jens Matthias & Hussinger, Katrin, 2004.
"Export Behavior and Firm Productivity in German Manufacturing : A Firm-level Analysis ,"
ZEW Discussion Papers
04-12, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
[Downloadable!]
Other versions:
Jens Matthias Arnold & Katrin Hussinger, 2004.
"Export Behavior and Firm Productivity in German Manufacturing: A firm-level analysis ,"
International Trade
0403007, EconWPA, revised 02 Nov 2004.
[Downloadable!] Jens Matthias Arnold & Katrin Hussinger, 2005.
"Export Behavior and Firm Productivity in German Manufacturing: A Firm-Level Analysis ,"
Review of World Economics (Weltwirtschaftliches Archiv) ,
Springer, vol. 141(2), pages 219-243, July.
[Downloadable!] (restricted) Andrew B. Bernard & J. Bradford Jensen & Peter K. Schott, 2003.
"Falling Trade Costs, Heterogeneous Firms, and Industry Dynamics ,"
NBER Working Papers
9639, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions:
Andrew B. Bernard & J. Bradford Jensen & Peter K. Schott, 2003.
"Falling Trade Costs, Heterogeneous Firms, and Industry Dynamics ,"
Yale School of Management Working Papers
ysm357, Yale School of Management.
[Downloadable!] Andrew B. Bernard & J. Bradford Jensen & Peter K. Schott, 2003.
"Falling Trade Costs, Heterogeneous Firms, and Industry Dynamics ,"
Peterson Institute Working Paper Series
WP03-4, Peterson Institute for International Economics.
[Downloadable!] Andrew B. Bernard & J. Bradford Jensen & Peter K. Schott, 2003.
"Falling Trade Costs, Heterogeneous Firms and Industry Dynamics ,"
CEP Discussion Papers
dp0585, Centre for Economic Performance, LSE.
[Downloadable!] Andrew Bernard & J. Bradford Jensen & Peter Schott, 2003.
"Falling Trade Costs, Heterogeneous Firms, and Industry Dynamics ,"
IFS Working Papers
W03/10, Institute for Fiscal Studies.
[Downloadable!] David B. Audretsch & A. Roy Thurik, 1999.
"Innovation, Industry Evoluation and Employment ,"
Tinbergen Institute Discussion Papers
99-068/3, Tinbergen Institute.
[Downloadable!]
Roberto Alvarez & Holger Görg, 2005.
"Multinationals and Plant Exit: Evidence from Chile ,"
IZA Discussion Papers
1611, Institute for the Study of Labor (IZA).
[Downloadable!]
Bee Yan Aw & Sukkyun Chung & Mark J. Roberts, 2003.
"Productivity, output, and failure: a comparison of taiwanese and korean manufacturers ,"
Economic Journal ,
Royal Economic Society, vol. 113(491), pages F485-F510, November.
[Downloadable!] (restricted)
Other versions: Jan De Loecker, 2004.
"Do Exports Generate Higher Productivity? Evidence from Slovenia ,"
LICOS Discussion Papers
15104, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven.
[Downloadable!]
Other versions: Holger Görg & Eric Strobl, 2003.
""Footloose" Multinationals? ,"
Manchester School ,
University of Manchester, vol. 71(1), pages 1-19, January.
[Downloadable!] (restricted)
Other versions: Andrew B. Bernard & J. Bradford Jensen & Peter K. Schott, 2003.
"Survival of the Best Fit: Exposure to Low-Wage Countries and the (Uneven) Growth of U.S. Manufacturing Plants ,"
CEP Discussion Papers
dp0584, Centre for Economic Performance, LSE.
[Downloadable!]
Other versions:
Andrew Bernard & J. Bradford Jensen & Peter Schott, 2003.
"Survival of the best fit: exposure to low-wage countries and the (uneven) growth of US manufacturing plants ,"
IFS Working Papers
W03/12, Institute for Fiscal Studies.
[Downloadable!] Andrew B. Bernard & J. Bradford Jensen & Peter K. Schott, 2003.
"Survival of the Best Fit: Exposure to Low-Wage Countries and the (Uneven) Growth of US Manufacturing Plants ,"
Peterson Institute Working Paper Series
WP03-3, Peterson Institute for International Economics.
[Downloadable!] J. Bradford Jensen & Andrew Bernard & Peter Schott, 2005.
"Survival of the Best Fit: Exposure to Low-Wage Countries and the (Uneven) Growth of U.S. Manufacturing Plants ,"
Working Papers
05-19, Center for Economic Studies, U.S. Census Bureau.
[Downloadable!] Bernard, Andrew B. & Jensen, J. Bradford & Schott, Peter K., 2006.
"Survival of the best fit: Exposure to low-wage countries and the (uneven) growth of U.S. manufacturing plants ,"
Journal of International Economics ,
Elsevier, vol. 68(1), pages 219-237, January.
[Downloadable!] (restricted) Andrew B. Bernard & J. Bradford Jensen, 2006.
"Firm Structure, Multinationals, and Manufacturing Plant Deaths ,"
Peterson Institute Working Paper Series
WP06-7, Peterson Institute for International Economics.
[Downloadable!]
Other versions:
J. Bradford Jensen & Andrew Bernard, 2005.
"Firm Structure, Multinationals, and Manufacturing Plant Deaths ,"
Working Papers
05-18, Center for Economic Studies, U.S. Census Bureau.
[Downloadable!] Andrew B Bernard & J. Bradford Jensen, 2007.
"Firm Structure, Multinationals, and Manufacturing Plant Deaths ,"
The Review of Economics and Statistics ,
MIT Press, vol. 89(2), pages 193-204, 02.
[Downloadable!] (restricted) Bowen, H. & Sleuwaegen, L., 2004.
"European integration: the third step ,"
Vlerick Leuven Gent Management School Working Paper Series
2004-19a, Vlerick Leuven Gent Management School.
[Downloadable!]
Other versions: Geroski, P. A., 1995.
"What do we know about entry? ,"
International Journal of Industrial Organization ,
Elsevier, vol. 13(4), pages 421-440, December.
[Downloadable!] (restricted)
Full
references
Access and
download statistics Did you know? The yearly budget of IDEAS is exactly $0: it relies entirely on volunteer work.
This page was last updated on 2008-8-25.
This information is provided to you by IDEAS at the Department of Economics , College of Liberal Arts and Sciences , University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics .