Growing trade in intermediate goods : outsourcing, global sourcing or increasing importance of MNE networks?

by Jörn Kleinert

Trade in intermediate goods as one possible link between rising trade and foreign direct investment is examined. To explain growing intermediate goods trade, three hypotheses are brought forward: outsourcing, global sourcing and the increasing importance of MNE networks. These hypotheses are tested by employing a cross-section framework, which uses OECD input-output table data, and an analysis, which relies on German time-series data. Increasing importance of MNE networks is found to be a reason of growing trade in intermediate goods in the cross-section and the time-series framework. The evidence for outsourcing and global sourcing is found to be much weaker.

MoreLess

Year of publication:	October 2000
Authors:	Kleinert, Jörn
Publisher:	Kiel (Germany) : Kiel Institute of World Economics
Subject:	Globalization \| Intermediate Goods Trade \| Outsourcing \| Global Sourcing \| Multinational Enterprise \| Vorleistungen \| Intermediate goods \| Außenhandel \| Foreign trade \| Internationale Arbeitsteilung \| International division of labour \| Schätzung \| Estimation \| Auslandsinvestition \| Foreign investment \| Beschaffung \| Procurement \| International \| Multinationales Unternehmen \| Transnational corporation \| Firmeninterner Handel \| Intra-firm trade \| Input-Output-Analyse \| Input-output analysis \| OECD-Staaten \| OECD countries \| Deutschland \| Germany \| Handel \| Zwischenprodukt