Defever, Fabrice
[VerfasserIn]
;
Fischer, Christian
[Sonstige Person, Familie und Körperschaft];
Suedekum, Jens
[Sonstige Person, Familie und Körperschaft]
Supplier Search and Rematching in Global Sourcing - Theory and Evidence from China
Erschienen in:CESifo Working Paper Series ; No. 6748
Umfang:
1 Online-Ressource (24 p)
Sprache:
Englisch
DOI:
10.2139/ssrn.3103681
Identifikator:
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 28, 2017 erstellt
Beschreibung:
In this paper, we consider a dynamic search-and-matching problem of a firm with its intermediate input supplier. In our model, a headquarter currently matched with a supplier, has an interest to find and collaborate with a more efficient partner. However, supplier switching through search and re-matching is costly. Given this trade-off between the fixed costs and the expected gains from continued search, the process will stop whenever the headquarter has found a sufficiently efficient supplier. Using firm-product-level data of fresh Chinese exporters to the United States, we obtain empirical evidence in line with the predictions of our theory. In particular, we find that the share of short-term collaborations is higher in industries with more supplier-cost dispersion, an indication of higher expected search opportunities