Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/30696
Authors: 
Kohler, Wilhelm K.
Smolka, Marcel
Year of Publication: 
2009
Series/Report no.: 
CESifo working paper 2903
Abstract: 
We investigate the link between productivity of firms and their sourcing behavior. Following Antràs & Helpman (2004) we distinguish between domestic and foreign sourcing, as well as between outsourcing and vertical integration. A firm’s choice is driven by a hold-up problem caused by lack of enforceable contracts. We use Spanish firm-level data to examine the productivity premia associated with the different sourcing strategies. We find strong empirical support for the predictions of the model.
Subjects: 
productivity
outsourcing
intra-firm trade
foreign direct investment
incomplete contracts
firm-level data
JEL: 
F14
F23
L22
L23
Document Type: 
Working Paper

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