IDEAS home Printed from https://ideas.repec.org/a/prg/jnlpol/v2009y2009i1id671p79-91.html
   My bibliography  Save this article

Delokalizace zpracovatelského průmyslu ČR (komponentní analýza)
[Delocalization of czech manufacturing: which branches of manufacturing are threatened by relocation abroad?]

Author

Listed:
  • Jan Ženka

Abstract

This paper examines international relocation determinants of Czech manufacturing companies in order to estimate the probability of potential delocalizations. The research is based on statistical evaluation of "internal keep-factors" (particular company features strengthening the location inertia of manufacturing), which are divided into three main groups - capital intensity, complexity of value chain and business sophistication. Keep-factors were examined on the company level and represented by six financial indicators. The sample covers 692 Czech manufacturing companies (foreign owned) with one hundred or more employees. The main goal is to identify branches of manucaturing threatened by delocalization. Manufacturing companies with low capital intensity, low value added/output ratio, high relative wages expenditures and no R&D activities are regarded as footloose - with high probability of potential relocation.

Suggested Citation

  • Jan Ženka, 2009. "Delokalizace zpracovatelského průmyslu ČR (komponentní analýza) [Delocalization of czech manufacturing: which branches of manufacturing are threatened by relocation abroad?]," Politická ekonomie, Prague University of Economics and Business, vol. 2009(1), pages 79-93.
  • Handle: RePEc:prg:jnlpol:v:2009:y:2009:i:1:id:671:p:79-91
    DOI: 10.18267/j.polek.671
    as

    Download full text from publisher

    File URL: http://polek.vse.cz/doi/10.18267/j.polek.671.html
    Download Restriction: free of charge

    File URL: http://polek.vse.cz/doi/10.18267/j.polek.671.pdf
    Download Restriction: free of charge

    File URL: https://libkey.io/10.18267/j.polek.671?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. R. E. Caves & M. E. Porter, 1977. "From Entry Barriers to Mobility Barriers: Conjectural Decisions and Contrived Deterrence to New Competition," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 91(2), pages 241-261.
    2. repec:hal:spmain:info:hdl:2441/3383 is not listed on IDEAS
    3. Marin, Dalia, 2004. "‘A Nation of Poets and Thinkers’ - Less So with Eastern Enlargement? Austria and Germany," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 77, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    4. Guillaume Daudin & Jean-Luc Gaffard & Sandrine Levasseur & Catherine Mathieu & Georges Pujals & Michel Quéré & Henri Sterdyniak, 2005. "Competition from emerging countries, international relocation and their impacts on employment," SciencePo Working papers Main hal-01065588, HAL.
    5. Pol Antràs & Luis Garicano & Esteban Rossi-Hansberg, 2006. "Offshoring in a Knowledge Economy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(1), pages 31-77.
    6. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The Skill Content of Recent Technological Change: An Empirical Exploration," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(4), pages 1279-1333.
    7. Leo Sleuwaegen & Enrico Pennings, 2006. "International Relocation Of Production: Where Do Firms Go?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 53(4), pages 430-446, September.
    8. Breschi, Stefano & Lissoni, Francesco, 2001. "Knowledge Spillovers and Local Innovation Systems: A Critical Survey," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 10(4), pages 975-1005, December.
    9. Bert Meijboom & Hans Voordijk, 2003. "International operations and location decisions: a firm level approach," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 94(4), pages 463-476, September.
    10. Aleid E. Brouwer & Ilaria Mariotti & Jos N. van Ommeren, 2004. "The firm relocation decision: An empirical investigation," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 38(2), pages 335-347, June.
    11. Aleid E. Brouwer, 2004. "The inert firm; why old firms show a stickiness to their location," ERSA conference papers ersa04p165, European Regional Science Association.
    12. Marin, Dalia, 2004. "'A Nation of Poets and Thinkers' - Less So with Eastern Enlargement? Austria and Germany," Discussion Papers in Economics 329, University of Munich, Department of Economics.
    13. T. Verbeke & M. De Clercq, 2003. "Environmental policy uncertainty, policy coordination and relocation decisions," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 03/208, Ghent University, Faculty of Economics and Business Administration.
    14. Pennings, Enrico & Sleuwaegen, Leo, 2000. "International relocation: firm and industry determinants," Economics Letters, Elsevier, vol. 67(2), pages 179-186, May.
    15. repec:hal:wpspec:info:hdl:2441/3383 is not listed on IDEAS
    16. Pen, Cees-Jan, 1999. "Improving the behavioural location theory," ERSA conference papers ersa99pa166, European Regional Science Association.
    17. repec:hrv:faseco:4784031 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jan Ženka & Vladislav Čadil, 2009. "Regional distribution of technology-intensive manufacturing industries in the czech republic with an accent on risk of delocalisation," Prague Economic Papers, Prague University of Economics and Business, vol. 2009(1), pages 61-77.
    2. Jesús F. Lampón & Santiago Lago-Peñas & Pablo Cabanelas, 2016. "Can the periphery achieve core? The case of the automobile components industry in Spain," Papers in Regional Science, Wiley Blackwell, vol. 95(3), pages 595-612, August.
    3. Lampón, Jesús F., 2019. "Relocation in conditions of uncertainty: the Spanish automobile components industry during the economic crisis (2008-2012)," MPRA Paper 92738, University Library of Munich, Germany.
    4. Jesús F. Lampón, 2020. "The impact of uncertainty on production relocation: Implications from a regional perspective," Papers in Regional Science, Wiley Blackwell, vol. 99(3), pages 427-446, June.
    5. Schäffler, Johannes & Moritz, Michael, 2018. "German FDI in the Czech Republic - Employment effects in the home country," IAB-Discussion Paper 201806, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Konstantin Koerner, 2023. "The wage effects of offshoring to the East and West: evidence from the German labor market," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 159(2), pages 399-435, May.
    7. Hecht, Veronika & Hohmeyer, Katrin & Litzel, Nicole & Moritz, Michael & Müller, Jo-Ann & Phan thi Hong, Van & Schäffler, Johannes, 2013. "Motive, Strukturen und Auswirkungen deutscher Direktinvestitionen in Tschechien : erste Untersuchungsergebnisse aus dem IAB-Projekt ReLOC - Research on Locational and Organisational Change," IAB-Forschungsbericht 201301, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    8. Jesús F. Lampón & Pablo Cabanelas-Lorenzo & Santiago Lago-Peñas, 2013. "Why firms relocate their production overseas? The answer lies inside: corporate, logistic and technological determinants," Working Papers 2013/3, Institut d'Economia de Barcelona (IEB).
    9. Jesús F. Lampón & Pablo Cabanelas-Lorenzo & Santiago Lago-Peñas, 2013. "Why firms relocate their production overseas? The answer lies inside: corporate, logistic and technological determinants," Working Papers 2013/3, Institut d'Economia de Barcelona (IEB).
    10. Schäffler, Johannes, 2016. "German Direct Investments in the Czech Republic – Employment Effects on German Multinational Enterprises," VfS Annual Conference 2016 (Augsburg): Demographic Change 145526, Verein für Socialpolitik / German Economic Association.
    11. Manuel Artis & Raul Ramos & Jordi Suriñach, 2006. "Job losses, outsourcing and relocation, empirical evidence using microdata," IREA Working Papers 200601, University of Barcelona, Research Institute of Applied Economics, revised Dec 2006.
    12. Hecht, Veronika & Litzel, Nicole & Schäffler, Johannes, 2013. "The ReLOC project : method report for implementing a cross-border company survey in Germany and the Czech Republic," IAB-Forschungsbericht 201304, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    13. Becker, Sascha O. & Ekholm, Karolina & Muendler, Marc-Andreas, 2013. "Offshoring and the onshore composition of tasks and skills," Journal of International Economics, Elsevier, vol. 90(1), pages 91-106.
    14. Konstantin Koerner & Michael Moritz & Johannes Schäffler, 2022. "Foreign direct investment and onshore employment dynamics: Evidence from German firms with affiliates in the Czech Republic," The World Economy, Wiley Blackwell, vol. 45(6), pages 1773-1829, June.
    15. Deschryvere, Matthias, 2009. "Mobility of Corporate Headquarter Functions: A Literature Review," Discussion Papers 1203, The Research Institute of the Finnish Economy.
    16. Körner, Konstantin, 2021. "The Wage Effects of Offshoring to the East and West: Evidence from Germany," IAB-Discussion Paper 202115, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    17. Lampón, Jesús F. & Cabanelas, Pablo & Carballo-Cruz, Francisco, 2017. "A model for international production relocation: Multinationals' operational flexibility and requirements at production plant level," Journal of Business Research, Elsevier, vol. 77(C), pages 95-101.
    18. repec:spo:wpmain:info:hdl:2441/3cr7jj61bs68cvg998pq0844g is not listed on IDEAS
    19. Daron Acemoglu & Gino Gancia & Fabrizio Zilibotti, 2015. "Offshoring and Directed Technical Change," American Economic Journal: Macroeconomics, American Economic Association, vol. 7(3), pages 84-122, July.
    20. Marin, Dalia, 2005. "A New International Division of Labor in Europe: Offshoring and Outsourcing to Eastern Europe," Discussion Papers in Economics 714, University of Munich, Department of Economics.
    21. David J. Deming, 2017. "The Growing Importance of Social Skills in the Labor Market," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(4), pages 1593-1640.

    More about this item

    Keywords

    manufacturing; international relocation; delocalization; offshoring; location inertia; keep-factors; footloose companies;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prg:jnlpol:v:2009:y:2009:i:1:id:671:p:79-91. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.