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The Effect of Offshoring on Productivity and Export Growth
Linköping University, Department of Management and Engineering, Economics. Linköping University, Faculty of Arts and Sciences.
2018 (English)Conference paper, Oral presentation with published abstract (Other academic)
Abstract [en]

This paper investigates the effect of offshoring on firm performances by using data on Danish manufacturing firms during the period 1995-2006. The results show that firms with better ex-ante characteristics are more inclined in offshoring activities. The results also show that firms that source from different locations possesses different ex-ante characteristics; the most productive source inputs from high-wage countries while, capital stock and being an exporter are more important factors when sourcing from low-wage countries. Moreover, controlling for the endogeneity of both the offshoring decision and location by using instrument variable and DiD matching approach, the results seem also to suggest that firms that allocated some of their production process to high-wage countries benefited from doing so in terms of higher growth of productivity and export intensity. Firms that allocated their offshoring activities to low-wage countries, on the other hand, seems to not have experienced any significant impact on neither productivity nor export, not even three years after they started to offshore.

Place, publisher, year, edition, pages
2018.
National Category
Economics
Identifiers
URN: urn:nbn:se:liu:diva-156532OAI: oai:DiVA.org:liu-156532DiVA, id: diva2:1307151
Conference
CIE XIX Conference on International Economics in Vila-Real, Spain
Available from: 2019-04-25 Created: 2019-04-25 Last updated: 2019-04-25

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Bandick, Roger

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