Replication data for: The Margins of Global Sourcing: Theory and Evidence from US Firms

Principal Investigator(s): View help for Principal Investigator(s) Pol Antràs; Teresa C. Fort; Felix Tintelnot

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Replication data for: The Margins of Global Sourcing: Theory and Evidence from US Firms		0

Project Citation:

Antràs, Pol, Fort, Teresa C., and Tintelnot, Felix. Replication data for: The Margins of Global Sourcing: Theory and Evidence from US Firms. Nashville, TN: American Economic Association [publisher], 2017. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E113025V1

Project Description

Summary: 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.

Scope of Project

JEL Classification:
      D24 Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
      F14 Empirical Studies of Trade
      F23 Multinational Firms; International Business
      L14 Transactional Relationships; Contracts and Reputation; Networks
      L21 Business Objectives of the Firm

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V1 [2019-10-12]

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