Why firms relocate their production overseas? The answer lies inside: corporate, logistic and technological determinants
The paper analyses the drivers of international production relocation using a model built on intra-corporate factors. The results of an empirical research on an original and thorough data base for the Spanish automobile parts sector over the period 2001-2008 show the impact of corporate restructuring strategies on flexibility for transferring resources overseas. In particular, the larger the number of alternative plants in other countries, the greater the operational flexibility and, therefore, the more likely relocation will be. Second, lean supply requirements and technological complexity in the product or process at production plant level are both serious barriers to mobility. Finally, our results confirm that sunk costs are irrelevant in comparison with corporate factors.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 93 403 46 46
Fax: 93 403 98 32
Web page: http://www.ieb.ub.edu
More information through EDIRC
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.:
- Pol Antràs & Elhanan Helpman, 2003.
NBER Working Papers
10082, National Bureau of Economic Research, Inc.
- Pol Antras & Elhanan Helpman, 2003. "Global Sourcing," Harvard Institute of Economic Research Working Papers 2005, Harvard - Institute of Economic Research.
- Antràs, Pol & Helpman, Elhanan, 2004. "Global Sourcing," CEPR Discussion Papers 4170, C.E.P.R. Discussion Papers.
- Antras, Pol & Helpman, Elhanan, 2004. "Global Sourcing," Scholarly Articles 3196327, Harvard University Department of Economics.
- Barba Navaretti, Giorgio & Falzoni, Anna M & Turrini, Alessandro Antonio, 2000.
"The Decision To Invest In A Low-Wage Country: Evidence From Italian Textiles And Clothing Multinationals,"
CEPR Discussion Papers
2395, C.E.P.R. Discussion Papers.
- Giorgio Barba Navaretti & Anna Falzoni & Alessandro Turrini, 2001. "The decision to invest in a low-wage country: Evidence from Italian textiles and clothing multinationals," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 10(4), pages 451-470.
- Yoonsoo Lee, 2006. "Relocation patterns in U.S. manufacturing," Working Paper 0624, Federal Reserve Bank of Cleveland.
- 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.
- Mouhoud, El Mouhoub, 2011.
"Mondialisation et délocalisation des entreprises,"
Economics Papers from University Paris Dauphine
123456789/10636, Paris Dauphine University.
- Belderbos, Rene & Sleuwaegen, Leo, 1996. "Japanese Firms and the Decision to Invest Abroad: Business Groups and Regional Core Networks," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 214-20, May.
- Motta, Massimo & Thisse, Jacques-Francois, 1994. "Does environmental dumping lead to delocation?," European Economic Review, Elsevier, vol. 38(3-4), pages 563-576, April.
- Leo van Wissen, 2000. "A micro-simulation model of firms: Applications of concepts of the demography of the firm," Papers in Regional Science, Springer, vol. 79(2), pages 111-134.
- Cordella, Tito & Grilo, Isabel, 2001.
"Social dumping and relocation: is there a case for imposing a social clause?,"
Regional Science and Urban Economics,
Elsevier, vol. 31(6), pages 643-668, November.
- Cordella, Tito & Grilo, Isabel, 1998. "'Social Dumping' and Relocation: Is there a Case for Imposing a Social Clause?," CEPR Discussion Papers 1931, C.E.P.R. Discussion Papers.
- Robert C. Feenstra, .
"Integration Of Trade And Disintegration Of Production In The Global Economy,"
Department of Economics
98-06, California Davis - Department of Economics.
- Robert C. Feenstra, 1998. "Integration of Trade and Disintegration of Production in the Global Economy," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 31-50, Fall.
- Robert Feenstra, 2003. "Integration Of Trade And Disintegration Of Production In The Global Economy," Working Papers 986, University of California, Davis, Department of Economics.
- Bogataj, Marija & Grubbström, Robert W. & Bogataj, Ludvik, 2011. "Efficient location of industrial activity cells in a global supply chain," International Journal of Production Economics, Elsevier, vol. 133(1), pages 243-250, September.
- Bruce Kogut & Nalin Kulatilaka, 1994. "Operating Flexibility, Global Manufacturing, and the Option Value of a Multinational Network," Management Science, INFORMS, vol. 40(1), pages 123-139, January.
- van Dijk, Jouke & Pellenbarg, Piet H., 1999.
"Firm relocation decisions in The Netherlands: an ordered logit approach,"
ERSA conference papers
ersa99pa418, European Regional Science Association.
- Jouke van Dijk & Piet H. Pellenbarg, 2000. "Firm relocation decisions in The Netherlands: An ordered logit approach," Papers in Regional Science, Springer, vol. 79(2), pages 191-219.
- 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, 09.
- Pennings, Enrico & Sleuwaegen, Leo, 2000. "International relocation: firm and industry determinants," Economics Letters, Elsevier, vol. 67(2), pages 179-186, May.
- Jozef Konings & Alan Patrick Murphy, 2006. "Do Multinational Enterprises Relocate Employment to Low-Wage Regions? Evidence from European Multinationals," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(2), pages 267-286, July.
- Aleid E. Brouwer & Ilaria Mariotti & Jos N. van Ommeren, 2004.
"The firm relocation decision: An empirical investigation,"
The Annals of Regional Science,
Springer, vol. 38(2), pages 335-347, 06.
- Brouwer, A.E. & Mariotti, I. & Ommeren, J.N. van, 2003. "The firm relocation decision: an empirical investigation," Serie Research Memoranda 0023, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
- Adelheid Holl, 2004.
"Start-ups and relocations: Manufacturing plant location in Portugal,"
Papers in Regional Science,
Springer, vol. 83(4), pages 649-668, October.
- Adelheid Holl, 2004. "Start-ups and relocations: Manufacturing plant location in Portugal," Economics of Governance, Springer, vol. 83(4), pages 649-668, October.
- Sriram Dasu & Lode Li, 1997. "Optimal Operating Policies in the Presence of Exchange Rate Variability," Management Science, INFORMS, vol. 43(5), pages 705-722, May.
- J. Knoben & L. A. G. Oerlemans, 2008. "Ties that Spatially Bind? A Relational Account of the Causes of Spatial Firm Mobility," Regional Studies, Taylor & Francis Journals, vol. 42(3), pages 385-400, April.
- repec:hrv:faseco:4784029 is not listed on IDEAS
- Chan, Su Han & Gau, George W. & Wang, Ko, 1995. "Stock Market Reaction to Capital Investment Decisions: Evidence from Business Relocations," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 30(01), pages 81-100, March.
- Markusen, James R., 2002.
"Multinational Firms and the Theory of International Trade,"
8380, University Library of Munich, Germany.
- James R. Markusen, 2004. "Multinational Firms and the Theory of International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262633078, June.
- De Toni, Alberto & Nassimbeni, Guido, 2000. "Just-in-time purchasing: an empirical study of operational practices, supplier development and performance," Omega, Elsevier, vol. 28(6), pages 631-651, December.
- Joris Knoben, 2006. "A Relational Account of the Causes of Spatial Firm Mobility," ERSA conference papers ersa06p1, European Regional Science Association.
- John Tomaney & Andy Pike & James Cornford, 1999. "Plant Closure and the Local Economy: The Case of Swan Hunter on Tyneside," Regional Studies, Taylor & Francis Journals, vol. 33(5), pages 401-411.
- Tony W Tong & Jeffrey J Reuer, 2007. "Real options in multinational corporations: organizational challenges and risk implications," Journal of International Business Studies, Palgrave Macmillan, vol. 38(2), pages 215-230, March.
- Chris Changwha Chung & Seung-Hyun Lee & Paul W Beamish & Takehiko Isobe, 2010. "Subsidiary expansion/contraction during times of economic crisis," Journal of International Business Studies, Palgrave Macmillan, vol. 41(3), pages 500-516, April.
- Peter J Buckley & Mark C Casson, 1998. "Models of the Multinational Enterprise," Journal of International Business Studies, Palgrave Macmillan, vol. 29(1), pages 21-44, March.
When requesting a correction, please mention this item's handle: RePEc:ieb:wpaper:2013/6/doc2013-3. 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: ()
If references are entirely missing, you can add them using this form.