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.
- Difference-in-difference-in-differences estimation
- Global sourcing
- Product cycle
ASJC Scopus subject areas
- Economics and Econometrics