Growing Trade in Intermediate Goods: Outsourcing, Global Sourcing, or Increasing Importance of MNE Networks?

Abstract

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Globalisation squeezes the public sector—is it so obvious?

“…7 We perceive improved access to foreign inputs in the sense of lower prices and/or access to more varieties as an important part of the globalization process and, therefore, include this into the model. Consistent with this modelling choice, empirical evidence shows that trade in intermediates is as important as trade in final goods (Kleinert 2003) and that the share of imported intermediate inputs in exports increases (Chen et al 2005). The latter is associated with production structures becoming more vertically fragmented at the international level through, e.g., offshoring.…”

What drives the differences in domestic value added in exports between old and new E.U. member states?

“…activities (OFDI) indicator devised by Kleinert (2003). The measure only comprises the production of intermediates within a firm's or firm group's boundaries and, as such, is not appropriate for measuring offshoring in the case where a firm purchases intermediates from suppliers outside the firm's or firm group's boundaries (Pilat & Wölfl, 2005).…”

Vertical Specialization of Production: Critical Review and Empirical Evidence for the Mexican Manufacturing Industries 1994-2014

“…In the same vein, Shelburne (2004) stresses that outsourcing results in a biased technological change with an increase in inequality in both developed and developing countries through downward pressures on wages for unskilled labor. Kleinert (2003) (Lüthje 2003). Differences in factor endowments between countries again determine the pattern of trade specialization.…”