1 / 14

CGP International Conference (May 2004)

CGP International Conference (May 2004). Foreign Outsourcing and Firm-level Characteristics: Evidence from Japanese Manufacturers Eiichi Tomiura. Foreign Outsourcing (FO). Increasing international fragmentation of production processes Active foreign trade in intermediate inputs

noah-lowe
Download Presentation

CGP International Conference (May 2004)

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. CGP International Conference (May 2004) Foreign Outsourcing and Firm-level Characteristics: Evidence from Japanese Manufacturers Eiichi Tomiura

  2. Foreign Outsourcing (FO) • Increasing international fragmentation of production processes • Active foreign trade in intermediate inputs • Political reactions and widespread debates • But, very little quantitative information, other than aggregate statistics, business anecdotes or future projections.

  3. Purposes of our research • Directly measuring FO, explicitly distinguished from domestic outsourcing, at the firm level, from a comprehensive sample. • Discussing its relationship with various firm-level characteristics. (Who chooseFO?)

  4. Previous studies • Imported inputs in input-output tables (Campa and Golberg (1996), Feenstra and Hanson(1997)) • Foreign trade of parts & components (Yeats(2001)) • Processing trade, foreign trade zones (Feenstra et al.(2000)) • Micro data (Swenson (2000), Gorg and Hanley (2003)) • Theoretical models of incomplete contract (Antras (2003), Grossman and Helpman (2002))

  5. Our firm-level data • Survey conducted by MITI in 1998 • Covering all manufacturing industries • Without firm-size thresholds • Including firms without outsourcing • Firm-level data on Q, L, K, R&D, IT, etc. • 118,300 manufacturing firms as a sample

  6. Definition of FO in the survey • Def: “contracting outof manufacturing or processing to other firms” • Non-production services not included. • Arm’s-length purchase of standardized parts not included. • Partly-owned FDI affiliates included. • Contracts by “wholesalers” not included.

  7. Number of Firms

  8. Share of FO

  9. Firm size

  10. Productivity

  11. IT (Use of computers)

  12. Empirical models • Heckman’s two-step estimation

  13. Estimation results • l significant (Selection by Human skill (or Firm size) & Foreign business experience). • Productivity (+) (esp. FO) • IT (+) (both FO & DO) • K/L, H/L (-) (esp. FO) • R&D (+) (both FO & DO) • Firm size (-) (esp. FO)

  14. Concluding remarks • Confirmed previous aggregate findings by firm-level data, and revealed previously unnoticed inter-firm heterogeneity. • Outsourcing of non-production services is not covered in this survey. • International comparison necessary. But, no other comprehensive firm-level data are currently available.

More Related