Product cycle, contractibility, and global sourcing

Xiaoping Chen; Yi Lu; Lianming Zhu

doi:10.1016/j.jdeveco.2017.03.006

Product cycle, contractibility, and global sourcing

Xiaoping Chen, Yi Lu^*, Lianming Zhu

^*Corresponding author for this work

Institute for Research in Contemporary Political and Economic Affairs

Research output: Contribution to journal › Article › peer-review

1 Citation (Scopus)

Abstract

This paper examines the organizational structure of global sourcing over the product cycle. This paper combines a new product list data set with China's customs data. The analysis finds that multinationals first produce within their foreign subsidiaries. When the product matures, firms start to outsource their production to external foreign suppliers. International outsourcing appears earlier along the product cycle when contractibility is better.

Original language	English
Pages (from-to)	283-296
Number of pages	14
Journal	Journal of Development Economics
Volume	127
DOIs	https://doi.org/10.1016/j.jdeveco.2017.03.006
Publication status	Published - 2017 Jul 1

Keywords

Contractibility
Difference-in-difference-in-differences estimation
Global sourcing
Offshoring
Product cycle

ASJC Scopus subject areas

Development
Economics and Econometrics

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10.1016/j.jdeveco.2017.03.006

Cite this

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title = "Product cycle, contractibility, and global sourcing",

abstract = "This paper examines the organizational structure of global sourcing over the product cycle. This paper combines a new product list data set with China's customs data. The analysis finds that multinationals first produce within their foreign subsidiaries. When the product matures, firms start to outsource their production to external foreign suppliers. International outsourcing appears earlier along the product cycle when contractibility is better.",

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author = "Xiaoping Chen and Yi Lu and Lianming Zhu",

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AU - Lu, Yi

AU - Zhu, Lianming

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AB - This paper examines the organizational structure of global sourcing over the product cycle. This paper combines a new product list data set with China's customs data. The analysis finds that multinationals first produce within their foreign subsidiaries. When the product matures, firms start to outsource their production to external foreign suppliers. International outsourcing appears earlier along the product cycle when contractibility is better.

KW - Contractibility

KW - Difference-in-difference-in-differences estimation

KW - Global sourcing

KW - Offshoring

KW - Product cycle

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VL - 127

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EP - 296

JO - Journal of Development Economics

JF - Journal of Development Economics

ER -

Product cycle, contractibility, and global sourcing

Abstract

Keywords

ASJC Scopus subject areas

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