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International outsourcing over the business cycle: some intuition for Germany, the Czech Republic and Slovakia

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  • Sandrine Levasseur

    (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)

Abstract

In this paper, we assess the extent to which multinational firms – in the first instance, the German ones – may adjust their international outsourcing over the business cycle in the Czech Republic and Slovakia. For that purpose, we have used monthly data of production for the manufacturing sector as a whole and some of its sub-sectors, since 2000 onwards. Our econometrical estimates suggest that there would be an asymmetry in the international outsourcing across the states of the economy, meaning that multinationals firms would be engaged differently in outsourcing activities, depending on whether bad or good economic times occur. Yet, such an asymmetry is found increasing over the time for German and French multinationals operating in the transport equipment sector of Slovakia. Another conclusion is that international outsourcing made by multinational firms in Slovakia may account for a portion of its large business cycles volatility.

Suggested Citation

  • Sandrine Levasseur, 2010. "International outsourcing over the business cycle: some intuition for Germany, the Czech Republic and Slovakia," Post-Print hal-03460241, HAL.
  • Handle: RePEc:hal:journl:hal-03460241
    Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03460241
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    References listed on IDEAS

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    1. AAA, AA+ : RAS ?
      by creel in OFCE le blog on 2012-01-15 17:55:40
    2. AAA, AA+: much Ado About no+hing?
      by creel in OFCE le blog on 2012-01-16 19:48:21

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    3. Magdolna Sass & Miklos Szanyi, 2012. "Two essays on Hungarian relocations," CERS-IE WORKING PAPERS 1223, Institute of Economics, Centre for Economic and Regional Studies.
    4. Bernard C. Beaudreau, 2013. "What the OECD-WTO TiVA Data Tell Us about Comparative Advantage and International Trade in General," The International Trade Journal, Taylor & Francis Journals, vol. 27(5), pages 465-481, December.

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    More about this item

    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
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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