Global Sourcing Decisions and Firm Productivity: Evidence from Spain

We develop a quantifiable multi-country sourcing model in which firms self-select into importing based on their productivity and country-specific variables. In contrast to canonical export models where firm profits are additively separable across destination markets, global sourcing decisions naturally interact through the firm's cost function. We show that, under an empirically relevant condition, selection into importing exhibits complementarities across source markets. We exploit these complementarities to solve the firm's problem and estimate the model. Comparing counterfactual predictions to reduced-form evidence highlights the importance of interdependencies in firms' sourcing decisions across markets, which generate heterogeneous domestic sourcing responses to trade shocks. (JEL D24, F14, F23, L14, L21)

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THE IMPACT OF LOCAL CONTENT RULES ON GLOBAL SOURCING DECISIONS

Production and Operations Management ◽

10.1111/j.1937-5956.1997.tb00431.x ◽

2009 ◽

Vol 6 (3) ◽

pp. 277-290 ◽

Cited By ~ 35

Author(s):

CHARLES L. MUNSON ◽

MEIR J. ROSENBLATT

Keyword(s):

Global Sourcing ◽

Local Content ◽

Sourcing Decisions ◽

The Impact

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Incorporating risks and costs into global sourcing decisions

International Journal of Procurement Management ◽

10.1504/ijpm.2019.102947 ◽

2019 ◽

Vol 12 (6) ◽

pp. 669

Author(s):

Satyendra Kumar Sharma ◽

Ravinder Singh ◽

Rajesh Matai

Keyword(s):

Global Sourcing ◽

Sourcing Decisions

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Fast Fashion In A Flat World: Global Sourcing Strategies

International Business & Economics Research Journal (IBER) ◽

10.19030/iber.v9i6.585 ◽

2010 ◽

Vol 9 (6) ◽

Cited By ~ 5

Author(s):

Barbara Mihm

Keyword(s):

Theoretical Model ◽

Future Research ◽

Global Sourcing ◽

Fast Fashion ◽

Sourcing Strategies ◽

Factors Influencing ◽

Sourcing Decisions ◽

Apparel Retailers

The following research offers a theoretical model for understanding sourcing decisions made by apparel retailers. The concept of fast fashion is explored by applying the model to Zara and Kohl’s. Factors influencing sourcing decisions are noted, and financial results of the retailers are compared. Finally, ideas for future research using the model are offered.

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