Offshoring, domestic sourcing, and productivity of South Korean firms
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This study examines the effect of offshoring and domestic outsourcing on firm productivity by using the system generalized method of moments (GMM). It considers trading firms’ organizational structure in relation to offshoring and domestic outsourcing, implying that offshoring and domestic sourcing activities are classified into intra-firm and arm’s-length transactions. This study finds that the effect of offshoring on total factor productivity (TFP) depends on the organizational structure of offshoring and offshored firms. By using a South Korean firm-level unbalanced panel dataset for 2010?2019, I find that intra-firm and arm’s- length offshoring have a statistically significant positive effect on TFP for firms with affiliates, but there is no such effect for firms without affiliates. Regarding domestic sourcing, it has a statistically significant positive effect on TFP for firms without affiliates but not for firms with affiliates.
Abstract
This study examines the effect of offshoring and domestic outsourcing on firm productivity by using the system generalized method of moments (GMM). It considers trading firms’ organizational structure in relation to offshoring and domestic outsourcing, implying that offshoring and domestic sourcing activities are classified into intra-firm and arm’s-length transactions. This study finds that the effect of offshoring on total factor productivity (TFP) depends on the organizational structure of offshoring and offshored firms. By using a South Korean firm-level unbalanced panel dataset for 2010?2019, I find that intra-firm and arm’s- length offshoring have a statistically significant positive effect on TFP for firms with affiliates, but there is no such effect for firms without affiliates. Regarding domestic sourcing, it has a statistically significant positive effect on TFP for firms without affiliates but not for firms with affiliates.
참고문헌 (30)
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