Productivity and the sourcing modes of multinational firms
Subtitle: evidence from French firm-level data
By: Fabrice  Defever and Farid  Toubal.
Contributors: Toubal, Farid.; London School of Economics and Political Science. Centre for Economic Performance.
Series: CEP discussion paper -- no. 842
Publisher: Centre for Economic Performance, London School of Economics and Political Science
Published: 2007
Place of publication: London
Language: eng
Format: Electronic resource
Description: We investigate the role of a firm's total factor productivity in its decision to import from their affiliates rather than from independent input suppliers. We propose a slightly modified version of the Antràs and Helpman (2004) model. We assume higher fixed costs under outsourcing and a firm-specific production function. We use detailed French firm-level data that provides a geographical breakdown of French firms' import at product level and their sourcing modes in 1999. We find strong empirical support for the theoretical predictions of the model. In particular, high-productivity firms that have a production process intensive in suppliers' inputs source their inputs through independent foreign suppliers.
Notes: Title from PDF file (viewed on Oct. 10, 2008).

"December 2007."

Includes bibliographical references.

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