Outsourcing and pass-through

• 成果类型: Article
• 署名作者: Hellerstein, Rebecca; Villas-Boas, Sofia B.
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - New York; University of California System; University of California Berkeley
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2010.03.004
• 发表日期: 2010
• 页码: 170-183
• 关键词: Exchange-rate pass-through; Intra-firm trade; Outsourcing; Vertical contracts

摘要

A large share of international trade occurs through intra-firm transactions. We show that this common cross-border organization of the firm has implications for the well-documented incomplete transmission of shocks across such borders. We present new evidence of an inverse relationship between a firm's outsourcing of inputs and its rate of exchange-rate pass-through. We then develop a structural econometric model with final assemblers and upstream parts suppliers to quantify how firms' organization of their activities across national borders affects their pass-through behavior. (C) 2010 Elsevier B.V. All rights reserved.