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Offshoring and product development
Linköping University, Department of Management and Engineering, Economics. Linköping University, Faculty of Arts and Sciences.
2017 (English)Conference paper, Oral presentation with published abstract (Other academic)
Abstract [en]

This paper investigates the link between offshoring and product development by utilizing novel and detailed firm- and product level dataset for the Danish manufacturing sector during the period 1996-2006. By using information on all import transactions disaggregated by origin and on all manufactured products and sales measured at the eight-digit Combined Nomenclature (CN8) level, I am able to define, i) whether the firms are engaged in offshoring activities or not, ii) the amount of CN2, CN4 and CN6 product mix they sell in the domestic and export market, and iii) whether they have (on a yearly basis) developed a new product. The results seem to indicate that offshoring firms have better ex-ante characteristics than non-offshoring firms. However, controlling for this endogeneity by using Coarsened Exact Matching (CEM), the results seem also to indicate that offshoring to high-wage countries increases the probability to develop a new CN4 and CN6 products by about 11 and 12 percent, whereas offshoring to low-wage countries have no effect on product development. Moreover, locating the offshoring to high-wage countries have no significant effect on the amount of CN2 product mix, only on CN4 and CN6 product mix. However, if the offshoring is located in low-wage countries the CN4 and CN6 product mix are not affected but the CN2 product mix is on average reduced by 5 percent as compared to the matched non-offshoring firms.

Place, publisher, year, edition, pages
2017.
National Category
Economics
Identifiers
URN: urn:nbn:se:liu:diva-156530OAI: oai:DiVA.org:liu-156530DiVA, id: diva2:1307149
Conference
Aarhus-Kiel workshop, Sandbjerg, Denmark
Available from: 2019-04-25 Created: 2019-04-25 Last updated: 2019-04-25

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Bandick, Roger

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CiteExportLink to record
Permanent link

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Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • oxford
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf