Industry Dynamics of Offshoring: The Case of Hard Disk Drives

• 成果类型: Article
• 署名作者: Igami, Mitsuru
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MICROECONOMICS
• ISSN/ISSBN: 1945-7669
• DOI: 10.1257/mic.20150256
• 发表日期: 2018
• 页码: 67-101
• 关键词: FOREIGN DIRECT-INVESTMENT; product differentiation; empirical exploration; imperfect competition; automobile-industry; UNITED-STATES; Market entry; life-cycle; TRADE; INNOVATION

摘要

This paper uncovers a novel pattern of offshoring dynamics in a high-tech industry, and proposes a structural model to explain it. Specifically, the hard disk drive industry (1976-1998) witnessed massive waves of entry, exit, and the relocation of manufacturing plants to low-cost countries, in which shakeouts occurred predominantly among home firms and almost all survivors were offshore firms. I build and estimate a dynamic offshoring game with entry/exit to measure the benefits and costs of offshoring, investigate the relationship between offshoring and market structure, and assess the impacts of hypothetical government interventions.