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Sourcing strategies and productivity: Evidence for Spanish manufacturing firms

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Fariñas García, José Carlos and López, Alberto and Martín Marcos, Ana (2016) Sourcing strategies and productivity: Evidence for Spanish manufacturing firms. BRQ Business Research Quarterly, 19 (2). pp. 90-106. ISSN 2340-9436

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Official URL: https://doi.org/10.1016/j.brq.2015.08.002



Abstract

This paper explores the relationship between productivity and sourcing strategies using a sample of Spanish manufacturing firms. In this analysis we use different measures of productivity and alternative ways of grouping firms. Our results indicate that productivity differs systematically across groups of firms with different sourcing strategies. The ranking of productivities we observe is not fully consistent with the predictions of Antràs and Helpman's (2004) model but we confirm many partial aspects of the proposed ranking. In our preferred specifications, the productivity advantage is highest for firms that import inputs from foreign subsidiaries. Moreover, the group of firms that outsource in the domestic market is, in general, at the bottom of the productivity distribution, with firms that outsource abroad having an intermediate productivity advantage. When analysing the direction of causality between productivity and sourcing strategies, we find weak evidence of self-selection of firms into offshoring and no influence of relocation on firm productivity.


Item Type:Article
Uncontrolled Keywords:Total factor productivity; Sourcing strategies; Offshoring; Self-selection; International trade; Outsourcing; Exports
Subjects:Social sciences > Economics > Econometrics
Social sciences > Economics > Business enterprises
Social sciences > Economics > Industrial organization
JEL:D24, F10, M20
ID Code:55187
Deposited On:07 May 2019 12:20
Last Modified:13 May 2019 10:47

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