Offshoring, Outsourcing and Production Fragmentation

Transcription

1 Offshoring, Outsourcing and Production Fragmentation

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3 Offshoring, Outsourcing and Production Fragmentation Linking Macroeconomic and Micro-Business Perspectives Mariusz-Jan Radlo Associate Professor of Economics, Warsaw School of Economics, and Managing Partner at SEENDICO, Warsaw, Poland

4 OFFSHORING, OUTSOURCING AND PRODUCTION FRAGMENTATION Copyright Mariusz-Jan Radło 2016 Softcover reprint of the hardcover 1st edition All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission. In accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6 10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. First published 2016 by PALGRAVE MACMILLAN The author has asserted his right to be identified as the author of this work in accordance with the Copyright, Designs and Patents Act Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number , of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan in the US is a division of Nature America, Inc., One New York Plaza, Suite 4500, New York, NY Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. ISBN E-PDF ISBN: DOI: / Distribution in the UK, Europe and the rest of the world is by Palgrave Macmillan, a division of Macmillan Publishers Limited, registered in England, company number , of Houndmills, Basingstoke, Hampshire RG21 6XS. Library of Congress Cataloging-in-Publication Data is available from the Library of Congress. A catalog record for this book is available from the Library of Congress A catalogue record for the book is available from the British Library

5 To Ulla, the love of my life, and our amazing sons: Hubert-Jan, Igor-Jan and Dawid-Jan

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7 Contents List of Figures List of Tables Acknowledgments ix xi xii Introduction 1 1 Offshoring, Outsourcing, Production Fragmentation: Definitions, Measures and Origin of the Research Introduction Definitions and taxonomies of offshoring and outsourcing Origin and main issues in research on offshoring and outsourcing Measuring offshoring and outsourcing Summary and conclusions 38 2 Offshoring and Outsourcing in Economic Theories Introduction Offshoring and outsourcing in neoclassical theory of the firm Offshoring and outsourcing in the new institutional economics Offshoring and outsourcing in light trade theory Offshoring and outsourcing in the perspective of foreign direct investment theories Summary and conclusions 94 3 Explaining and Modeling Offshoring and Outsourcing in Enterprises Introduction Evolution of the scope and structure of offshoring and outsourcing in enterprises 99 vii

8 viii Contents 3.3 Offshoring and outsourcing in enterprises: motives and location factors Models offshoring and outsourcing in enterprises Summary and conclusions Evolutionary View of International Production Fragmentation in Enterprises Introduction Case and comparative studies: data, method, results, and discussion Industry case studies Discussion of results Summary and conclusions Production Fragmentation in the World Economy Introduction Main trends in trade and FDI flows Offshoring and the development of global production chains Offshoring impact on wages, employment and labor productivity Summary and conclusions 181 Summary and Conclusions 184 References 195 Index 213

9 List of Figures 1.1 Number of articles in scientific journals mentioning outsourcing and/or offshoring in ScienceDirect and ProQuest databases Key terms related to production fragmentation Firm equilibrium in neoclassical model Captive production fragmentation and firm equilibrium in neoclassical model, perfect competition Non-captive production fragmentation and firm equilibrium in neoclassical model, perfect competition Captive production fragmentation and firm equilibrium in neoclassical model, monopolistic competition Non-captive production fragmentation and firm equilibrium in neoclassical model, monopolistic competition Determinants of production fragmentation and related theories Production fragmentation at various stages of internationalization of companies Inward foreign direct investment flows, annually, Outward foreign direct investment stock, annually, Exports of goods and services, annually, Exports of goods and services, annually, Outward and inward FDI stock, annually, Tariff rate, applied, weighted mean, all products Restrictions to FDI and the value of inward FDI stock Share of intermediate goods in exports and imports of goods 162 ix

10 x List of Figures 5.9 Exports of goods and services, annually, World exports of computers and information, and other business services, World exports of computers and information, and other business services, (percentage of total exports of services) Offshoring indicator in key sectors and in selected economies 171

11 List of Tables 1.1 Manifestations of production fragmentation and the relevant data sources Simple contractual schema and the organization of transactions Motives for FDI, stage of internationalization, and production fragmentation Models of production fragmentation Determinants of captive and non-captive production fragmentation Internationalization and fragmentation in Nestlé and Maspex (as of 2012) Production fragmentation in software industry: IBM versus Asseco (as of 2012) Internationalization and fragmentation in H&M and LPP (as of 2012) Main exporters of telecommunications, computer, and information services, and other business services (as of 2013) 169 xi

12 Acknowledgments First, I would like to express my sincere appreciation for many valuable comments from my colleagues from the World Economy Research Institute at the Warsaw School of Economics on the concept of the study, its individual parts and its structure, as well as for helpful suggestions received from Prof. Marzenna A. Weresa and Dr Dorota Ciesielska. I would also like to thank the reviewers of my habilitation thesis preceding this book: Prof. Wojciech Bieńkowski, Prof. Sławomir Bukowski, Prof. Adam Budnikowski, Prof. Andrzej Wojtyna, Prof. Zofia Wysokińska, and Prof. Wacław Jarmołowicz, for their insightful comments. This book would not have come to fruition without the support of the Polish National Science Center Grant No NN titled Service offshoring and its impact on enterprises. My sincere thanks also go to Laura Pacey, Assistant Editor for Economics at Palgrave Macmillan, who encouraged me when writing this book and made me deliver the manuscript on time. Last but not least, I would like to thank my wife and my sons for their patience and support when writing this book. xii