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Do Immigrants Spur Offshoring?: Firm-Level Evidence
The Ratio Institute, Stockholm, Sweden. (Internationell ekonomi)
Örebro University, Örebro University School of Business. (Internationell ekonomi)ORCID iD: 0000-0002-5830-9831
GEP, University of Nottingham, Nottingham, United Kingdom.
Örebro University, Swedish Business School at Örebro University. The Ratio Institute, Stockholm, Sweden. (Internationell ekonomi)ORCID iD: 0000-0003-0149-9598
(English)Manuscript (preprint) (Other academic)
Abstract [en]

Offshoring is an important aspect of firms’ internationalization. However, offshoring comes at a cost, especially where information or trust is lacking. Immigrant employees could reduce such offshoring costs through their knowledge of their former home countries and via access to foreign networks. We develop a framework of heterogeneous final-good firms to guide our empirical analysis and draw on new employer-employee data for approximately 12,000 Swedish firms during the time period 1998-2007. Our results support the hypothesis that immigrant employees spur offshoring activities by firms through lower offshoring costs. Hiring one additional foreign-born worker can increase offshoring up to three percent on average, with skilled migrants having the strongest effects. 

Keyword [en]
Offshoring, migration, networks, trust, information, trade barriers
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:oru:diva-54198OAI: oai:DiVA.org:oru-54198DiVA, id: diva2:1059938
Projects
Migration, integration och företagens globalisering - hur bidrar migration och integration i arbetslivet till företagens globalisering?
Funder
The Jan Wallander and Tom Hedelius Foundation, W2013-0425:1
Available from: 2016-12-26 Created: 2016-12-26 Last updated: 2017-11-09Bibliographically approved

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Hatzigeorgiou, AndreasKarpaty, PatrikLodefalk, Magnus
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Örebro University School of BusinessSwedish Business School at Örebro University
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CiteExportLink to record
Permanent link

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Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
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  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
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  • Other locale
More languages
Output format
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