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ITO Banri
Department Aoyama Gakuin University Department of Economics, College of Economics Position Professor |
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| Language | English |
| Publication Date | 2011 |
| Type | Academic Journal |
| Peer Review | Peer reviewed |
| Title | Offshore Outsourcing Decision and Capital Intensity: Firm-Level Relationships |
| Contribution Type | Collaboration |
| Journal | Economic Inquiry |
| Journal Type | Another Country |
| Volume, Issue, Page | pp.364-378 |
| Author and coauthor | Eiichi Tomiura, Banri Ito and Ryuhei Wakasugi |
| Details | In offshore sourcing, a firm chooses outsourcing to independent suppliers or in-sourcing from own foreign direct investment (FDI) subsidiaries. Based on the firm-level data on offshore make-or-buy decision covering all manufacturing industries, this paper compares averages, documents inter-firm distributions, and estimates multinomial logit models of the firm's sourcing mode choice. As predicted by previous theoretical models, this paper directly confirms at the firm level that outsourcing firms tend to be substantially labor-intensive compared with firms in-sourcing from the same region, even after the firm's R&D intensity, firm size, or industry is controlled for. |