IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Contracting Institutions and the Insertion of LAC in International Production Networks

Listed author(s):
  • Juan S. Blyde

This paper examines the role of contracting institutions on the insertion of developing countries in international production networks and particularly on the prospects of LAC to source goods beyond the region's traditional patterns of specialization. We show that LAC's insertion in global production networks is biased towards arm's-length transactions in industries that tend to be labor-intensive and that do not typically require relation-specific investments. We also show that the countries that have been able to diversify their export successfully in international production networks have not focused exclusively on arm's-length transactions but engage in both types of sourcing via arm's-length and intra-firm trade. Results from an econometric model indicate that taking advantage of offshoring opportunities arising from capital- and contract-intensive industries requires fostering the quality of contractual institutions. Increasing the quality of contracting institutions is likely to improve first the chances of supplying contract-intensive activities through FDI, but further increases may potentially induce additional offshoring through local contractors.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by Inter-American Development Bank in its series IDB Publications (Working Papers) with number 78601.

in new window

Date of creation: May 2012
Handle: RePEc:idb:brikps:78601
Contact details of provider: Postal:
1300 New York Avenue, NW, Washington, DC 20577

Phone: 202-623-1000
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:idb:brikps:78601. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Monica Bazan)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.