The Role of Institutions and Networks in Firms' Offshoring Decisions


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The Role of Institutions and Networks in Firms' Offshoring Decisions

Show simple item record Moriconi, Simone Peri, Giovanni Pozzoli, Dario 2018-08-10T11:24:45Z 2018-08-10T11:24:45Z 2018-08-10
dc.description.abstract The offshoring of production by multinational firms has expanded dramatically in recent decades, increasing the potential for economic growth and technological trans- fers. What determines the location of such offshore production? How do the policies and characteristics of countries affect these decisions? Do firms choose specific coun- tries because of their policies or because they are more familiar with them? In this paper, we use a very rich dataset on Danish firms to analyze how their decisions re- garding offshore production depend on institutional characteristics and firm-specific bilateral connections with these countries. We find that institutions that enhance in- vestor protections and reduce corruption increase the probability of offshoring, while those that introduce regulatory constraints in the labor market discourage it. We also show that offshoring activities are more likely for firms that have developed networks in the country of destination. en_US
dc.format.extent 48 en_US
dc.language eng en_US
dc.publisher Department of Economics. Copenhagen Business School en_US
dc.relation.ispartofseries Working paper;4-2018
dc.subject.other Offshoring en_US
dc.subject.other Product market en_US
dc.subject.other Labor regulations en_US
dc.subject.other Network en_US
dc.subject.other Fixed costs en_US
dc.title The Role of Institutions and Networks in Firms' Offshoring Decisions en_US
dc.type wp en_US
dc.contributor.corporation Copenhagen Business School. CBS en_US
dc.contributor.department Økonomisk Institut en_US
dc.contributor.departmentshort ECON en_US
dc.contributor.departmentuk Department of Economics en_US
dc.contributor.departmentukshort ECON en_US Frederiksberg en_US
dc.publisher.year 2018 en_US

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