The role of institutions and immigrant ...
Document type :
Compte-rendu et recension critique d'ouvrage
DOI :
Title :
The role of institutions and immigrant networks in firms’ offshoring decisions
Author(s) :
Moriconi, Simone [Auteur]
Lille économie management - UMR 9221 [LEM]
Peri, Giovanni [Auteur]
Pozzoli, Dario [Auteur]
Lille économie management - UMR 9221 [LEM]
Peri, Giovanni [Auteur]
Pozzoli, Dario [Auteur]
Journal title :
Canadian Journal of Economics / Revue Canadienne d'Économique
Pages :
1745-1792
Publisher :
Wiley
Publication date :
2020-11
ISSN :
0008-4085
HAL domain(s) :
Sciences de l'Homme et Société/Economies et finances
English abstract : [en]
The offshoring of production by firms has expanded dramatically in recent decades, increasing their potential for economic growth. What determines the location of offshore production? How do countries’ policies and ...
Show more >The offshoring of production by firms has expanded dramatically in recent decades, increasing their potential for economic growth. What determines the location of offshore production? How do countries’ policies and characteristics affect a firm's decision about where to offshore? Do firms choose specific countries because of the countries’ policies or because they know them better? In this paper, we use a rich dataset on Danish firms to analyze how decisions to offshore production depend on the institutional characteristics of the country and firm-specific bilateral networks. We find that institutions that reduce credit risk and corruption increase the probability that firms will offshore there, while those that increase regulation in the labour market decrease this probability. We also show that a firm's probability of offshoring increases with the share of its employees who are immigrants from that country of origin. Finally, our analysis reveals that the negative impact of institutions that hinder offshoring is attenuated by a strong bilateral network of foreign workers.Show less >
Show more >The offshoring of production by firms has expanded dramatically in recent decades, increasing their potential for economic growth. What determines the location of offshore production? How do countries’ policies and characteristics affect a firm's decision about where to offshore? Do firms choose specific countries because of the countries’ policies or because they know them better? In this paper, we use a rich dataset on Danish firms to analyze how decisions to offshore production depend on the institutional characteristics of the country and firm-specific bilateral networks. We find that institutions that reduce credit risk and corruption increase the probability that firms will offshore there, while those that increase regulation in the labour market decrease this probability. We also show that a firm's probability of offshoring increases with the share of its employees who are immigrants from that country of origin. Finally, our analysis reveals that the negative impact of institutions that hinder offshoring is attenuated by a strong bilateral network of foreign workers.Show less >
Language :
Anglais
Popular science :
Non
ANR Project :
Collections :
Source :
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