HAL will be down for maintenance from Friday, June 10 at 4pm through Monday, June 13 at 9am. More information
Skip to Main content Skip to Navigation
Preprints, Working Papers, ...

Misfits in the car industry: Offshore Assembly Decisions at the Variety Level

Abstract : This paper estimates the role of country/variety comparative advantage in the decision to offshore assembly of more than 2000 models of 197 car brands headquartered in 23 countries. While offshoring in the car industry has risen from 2000 to 2016, the top five offshoring brands account for half the car assembly relocated to low wage countries. We show that the decision to offshore a particular car model depends on two types of cost (dis)advantage of the home country relative to foreign locations. The first type, the assembly costs common to all models, is estimated via a structural triadic gravity equation. The second effect, model-level comparative advantage, is an interaction between proxies for the model's skill and capital intensity and headquarter country's abundance in these factors.
Keywords : Offshoring Gravity Cars
Document type :
Preprints, Working Papers, ...
Complete list of metadata

https://hal-sciencespo.archives-ouvertes.fr/hal-03393131
Contributor : Spire Sciences Po Institutional Repository Connect in order to contact the contributor
Submitted on : Thursday, October 21, 2021 - 9:39:01 PM
Last modification on : Monday, March 21, 2022 - 2:50:37 PM
Long-term archiving on: : Saturday, January 22, 2022 - 9:16:33 PM

File

2018-mayer-and-head-misfits-in...
Publisher files allowed on an open archive

Identifiers

Collections

Citation

Thierry Mayer, Keith Head. Misfits in the car industry: Offshore Assembly Decisions at the Variety Level. 2018. ⟨hal-03393131⟩

Share

Metrics

Record views

6

Files downloads

9