Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/244522 
Year of Publication: 
2016
Series/Report no.: 
Working Paper No. 7/2016
Publisher: 
Örebro University School of Business, Örebro
Abstract: 
Offshoring is an important aspect of firms' internationalization. However, offshoring comes at a cost, especially where information or trust is lacking. Immigrant employees could reduce such offshoring costs through their knowledge of their former home countries and via access to foreign networks. We develop a framework of heterogeneous final-good firms to guide our empirical analysis and draw on new employer-employee data for approximately 12,000 Swedish firms during the time period 1998-2007. Our results support the hypothesis that immigrant employees spur offshoring activities by firms through lower offshoring costs. Hiring one additional foreign-born worker can increase offshoring up to three percent on average, with skilled migrants having the strongest effects.
Subjects: 
offshoring
migration
networks
trust
information
trade barriers
JEL: 
D21
D83
F14
F22
F23
Document Type: 
Working Paper

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