Tan, Yong (2016): The Impact of Demand Shocks on Firm-Level Offshoring Behavior: Theory and Evidence.
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Abstract
This paper extends the model of Antras et al.(2014) to disentangle the link between demand shocks and firm-level offshoring decisions. The model predicts that a positive demand shock increases the firm-level purchases of imported intermediates in both the extensive and intensive margins. Using a difference-in-difference approach, we examine the response of Chinese exporters to a quota removal on textile and clothing products, which is equivalent to a positive demand shock. The findings indicate that firms import more varieties and higher volumes of intermediates after the quota removal. The results are robust to different regression designs.
Item Type: | MPRA Paper |
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Original Title: | The Impact of Demand Shocks on Firm-Level Offshoring Behavior: Theory and Evidence |
Language: | English |
Keywords: | Intermediates Offshoring, Textile and Clothing, Demand Shock, Quota Removal |
Subjects: | F - International Economics > F1 - Trade > F10 - General F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L11 - Production, Pricing, and Market Structure ; Size Distribution of Firms |
Item ID: | 73734 |
Depositing User: | Dr. Yong Tan |
Date Deposited: | 15 Sep 2016 10:57 |
Last Modified: | 04 Oct 2019 22:22 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/73734 |
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