Product cycle, contractibility, and global sourcing

Xiaoping Chen, Yi Lu, Lianming Zhu

Research output: Contribution to journalArticle

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 languageEnglish
Pages (from-to)283-296
Number of pages14
JournalJournal of Development Economics
Volume127
DOIs
Publication statusPublished - 2017 Jul 1

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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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