Publication
Jan 2010
We use unique plant-level data to study the link between the local availability of services and the decision of manufacturing firms to source materials from abroad. To guide our empirical analysis we develop a monopolistic-competition model of the materials sourcing decisions of heterogeneous firms. The model generates predictions about how the intensity of international sourcing of materials depends on a firm’s productivity and the availability of local services. We find evidence that more productive manufacturing firms tend to have a higher ratio of imported materials to sales.
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English (PDF, 38 pages, 448 KB) |
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Author | Peter Debaere, Holger Görg, Horst Raff |
Series | Kiel Institute Working Papers |
Issue | 1591 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2010 Kiel Institute for the World Economy |