This paper empirically analyzes the boundaries of a large sample of Italian multinational enterprises, with firm-level data from Capitalia, AIDA and Centrale dei Bilanci. Within the broad array of feasible contracts in a foreign country, we focus on the trade-off between international outsourcing and Foreign Direct Investment (FDI), in a context of contractual incompleteness. Probit estimates reveal that Italian enterprises operating in highly relation-specific environments are more prone to international outsourcing than FDI, consistently with recent theoretical contributions on the topic. Results are robust to different specifications and alternative measures of contractual incompleteness and international outsourcing.

Gattai, V. (2013). International Outsourcing versus FDI under Contractual Incompleteness. INTERNATIONAL REVIEW OF ECONOMICS, 60(2), 157-186 [10.1007/s12232-013-0181-5].

International Outsourcing versus FDI under Contractual Incompleteness

Gattai, V
2013

Abstract

This paper empirically analyzes the boundaries of a large sample of Italian multinational enterprises, with firm-level data from Capitalia, AIDA and Centrale dei Bilanci. Within the broad array of feasible contracts in a foreign country, we focus on the trade-off between international outsourcing and Foreign Direct Investment (FDI), in a context of contractual incompleteness. Probit estimates reveal that Italian enterprises operating in highly relation-specific environments are more prone to international outsourcing than FDI, consistently with recent theoretical contributions on the topic. Results are robust to different specifications and alternative measures of contractual incompleteness and international outsourcing.
Articolo in rivista - Articolo scientifico
FDI, international outsourcing, contractual incompleteness, Italy
English
2013
60
2
157
186
none
Gattai, V. (2013). International Outsourcing versus FDI under Contractual Incompleteness. INTERNATIONAL REVIEW OF ECONOMICS, 60(2), 157-186 [10.1007/s12232-013-0181-5].
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10281/45335
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