Global sourcing, productivity and export intensity

Abstract

This paper investigates the effect of global sourcing on firm performances by using data on Danish manufacturing firms during the period 1995–2006. The results show that firms with better ex‐ante characteristics are more inclined to source intermediate inputs from abroad. The results also show that firms that source from different locations possess different ex‐ante characteristics; the most productive source inputs from high‐wage countries while capital stock and being an exporter are more important factors when sourcing from low‐wage countries. Moreover, controlling for the endogeneity of both the sourcing decision and location by using instrument variable and DiD matching approach, the results seem also to suggest that firms that source inputs from high‐wage countries benefited from doing so in terms of higher growth of productivity and export intensity. Firms that source inputs from low‐wage countries, on the other hand, seem not to have experienced any significant impact on neither productivity nor export, not even three years after they started to source inputs from these countries.

Analyzing the Relationship Between the Firm’s Total Factor Productivity and Firm Characteristics in the Turkish Manufacturing Sector

“…Firms provide access to better quality and affordable imported intermediate input using as a result of increasing competitive pressure with the acceleration of globalization (Castantelli et al, 2010). Since the use of imported intermediate inputs may be of higher quality than domestic intermediate inputs (Castellani et al, 2010) and less costly, it affects the firm productivity (Bandick, 2020). Thus, the diversification of intermediate goods can shorten the production process (Altomente et al, 2013) and the use of imported intermediate input directly positively increases firm productivity and leads to changes in factor shares (Görg & Hanley, 2005).…”

Doğrudan Yabancı Yatırım Girişlerinin Risk, Belirsizlik ve Küreselleşme ile İlişkisi

“…Firms provide access to better quality and affordable imported intermediate input using as a result of increasing competitive pressure with the acceleration of globalization (Castantelli et al, 2010). Since the use of imported intermediate inputs may be of higher quality than domestic intermediate inputs (Castellani et al, 2010) and less costly, it affects the firm productivity (Bandick, 2020). Thus, the diversification of intermediate goods can shorten the production process (Altomente et al, 2013) and the use of imported intermediate input directly positively increases firm productivity and leads to changes in factor shares (Görg & Hanley, 2005).…”

Türk Tarım Sektöründe J Eğrisi Etkisinin Geçerliliğinin Ampirik Analizi

“…Firms provide access to better quality and affordable imported intermediate input using as a result of increasing competitive pressure with the acceleration of globalization (Castantelli et al, 2010). Since the use of imported intermediate inputs may be of higher quality than domestic intermediate inputs (Castellani et al, 2010) and less costly, it affects the firm productivity (Bandick, 2020). Thus, the diversification of intermediate goods can shorten the production process (Altomente et al, 2013) and the use of imported intermediate input directly positively increases firm productivity and leads to changes in factor shares (Görg & Hanley, 2005).…”