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Offshoring and Business Organization: Evidence from Canadian Manufacturing Firms

Author

Listed:
  • Lydia Couture

    (Statistics Canada)

  • Jianmin Tang

    (Industry Canada)

  • Beiling Yan

    (Statistics Canada)

Abstract

In the globalized economy, it has become essential for firms to re-organize their production to grow and to be competitive in both domestic and international markets. Over the past decade, offshoring has emerged as an important and valuable business re-organization avenue, especially in the manufacturing sector. Using newly linked Canadian manufacturing micro data for 2002-2006, which for the first time provides a direct measure of offshoring over a period in Canada at the firm level, this paper examines and estimates the linkage between offshoring and business organization. It shows that offshoring is part of firms¡¦ overall business strategy, closely linked to other outward-oriented business activities such as exporting and being foreign-controlled. In addition, it is found that offshoring is associated with business organization in terms of firm variation in intermediate input variety and in output concentration.

Suggested Citation

  • Lydia Couture & Jianmin Tang & Beiling Yan, 2015. "Offshoring and Business Organization: Evidence from Canadian Manufacturing Firms," Transnational Corporations Review, Ottawa United Learning Academy, vol. 7(2), pages 148-168, June.
    • Handle: RePEc:oul:tncr09:v:7:y:2015:i:2:p:148-168
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    Citations

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    Cited by:

    1. Zhang, Xiaoge & Zhang, Yvette & Lin, Benxi & Jin, Shaosheng, 2021. "Research on the Effect of FDI on the Domestic Value-Added of Food Processing and Manufacturing Enterprises' Exports and Its Mechanism," 2021 Conference, August 17-31, 2021, Virtual 315404, International Association of Agricultural Economists.
    2. Yu, Chunjiao & Luo, Zhechong, 2018. "What are China's real gains within global value chains? Measuring domestic value added in China's exports of manufactures," China Economic Review, Elsevier, vol. 47(C), pages 263-273.

    More about this item

    Keywords

    Offshoring; business organization; intermediate input variety; output concentration;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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