Offshoring and Firm Overlap

Konferenzbeitrag

We set up a model of offshoring with heterogeneous producers that captures two empirical regularities on offshoring firms: larger, more productive firms are more likely to make use of the offshoring opportunity; the fraction of firms that engages in offshoring is positive and smaller than one in any size or revenue category. These patterns generate an overlap of offshoring and non-offshoring firms, which is non-monotonic in the costs of offshoring. In an empirical exercise, we employ firm-level data from Germany to estimate key parameters of the model. We show that ignoring the overlap leads to a severe downward bias in the estimated gains from offshoring, which amounts to almost 60 percent in our model.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2015: Ökonomische Entwicklung - Theorie und Politik - Session: Offshoring I ; No. B02-V3

Classification and Topics

• Classification: Wirtschaft ; Trade: General ; Trade and Labor Market Interactions ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Schmerer, Hans-Jörg ; Capuano, Stella ; Egger, Hartmut ; Koch, Michael
• Event: Veröffentlichung
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/113147
• Last update: 10.03.2025, 11:44 AM CET