EU Integration and Production Networks: Evidende from Spain

The aim of this paper is to advance knowledge of Spain's participation in international production networks using data on trade in parts and components from 1990 to 2006. Data analysis shows a remarkable dynamism of Spanish trade in P&C, both in imports and exports, being capable of keeping their shares despite the intense competition from less developed countries. Additionally, Spanish participation in networks is mostly in Europe. In fact, Spain has maintained itself as one of the primary destinations of European P&C exports and has been the only economy that has improved its position as a supplier. These facts allow us to infer a significant competitive capacity of the Spanish economy in Europe, for both production and assembly of P&C. The EU enlargement to Eastern European countries seems not to have damaged Spanish competitiveness as an assembler. In order to analyse the nature of Spanish participation in production networks, we estimate the determinants of trade in P&C using an extended gravity panel data model. In addition to the standard variables in gravity models, we also examine the role of differences in technology and factor endowment between Spain and its trading partners, and the role of service link costs in P&C trade. We find that Spain's integration in production networking responds to comparative advantage but also to other factors such as EU membership and a good quality transport and communication infrastructures. Some lessons from the experience of a middle-income country like Spain may be useful for the CEECs, which have increased their presence in European production sharing in the last decade. Future EU enlargement towards lower costs countries could threaten their position in networking. The reinforcement of these other factors, besides comparative advantage, would act as key element to strengthen their participation in cross-border networks

Exit from Exporting: Does Engagement in Transnational Networks Matter?

The aim of this paper is to investigate whether the probability of ceasing exports is lower for firms that are integrated in transnational production chains, once other firm characteristics are controlled for. On the basis of the estimation of a random-effects probit model with panel data, we find that the superior characteristics of firms involved in global networks (in terms of productivity, foreign ownership and skilled labor) explain their greater resistance to losing their status as exporters. However, for small firms, even when these distinctive features are controlled for, integration in international networks plays an important role in continuing to export. Thus, it seems that small firms which participate in networks have an added advantage which enables them to confront the uncertainty of foreign markets in better conditions and translates to a lower likelihood that they will stop exporting

Exit from Exporting: Does Engagement in Transnational Networks Matter?

The aim of this paper is to investigate whether the probability of ceasing exports is lower for firms that are integrated in transnational production chains, once other firm characteristics are controlled for. On the basis of the estimation of a random-effects probit model with panel data, we find that the superior characteristics of firms involved in global networks (in terms of productivity, foreign ownership and skilled labor) explain their greater resistance to losing their status as exporters. However, for small firms, even when these distinctive features are controlled for, integration in international networks plays an important role in continuing to export. Thus, it seems that small firms which participate in networks have an added advantage which enables them to confront the uncertainty of foreign markets in better conditions and translates to a lower likelihood that they will stop exporting

Crisis and Recovery

Focussing on the global trade collapse and the subsequent recovery period, this paper examines the export performance of firms that are involved in complex internationalization strategies, which are typically associated with GVC engagement. Using a random-effects probit model with panel data and a dynamic panel data, it is found that, once firm characteristics are controlled for, complex internationalization plays an important role in continuing to export and, additionally, positively influences the level of exports. Thus, firms active in a complex mix of internationalization strategies have an added advantage, which enables them to confront the uncertainty of foreign markets in better conditions and translates to a lower likelihood of ceasing exporting and to higher export values. The analysis goes one-step further and investigate whether the impact is different during the trade collapse in 2009 and the following recovery. Here previous empirical research at firm level on the role of GVCs in trade is contradictory. The present paper throws light on this question by showing that the negative impact of trade collapse in 2009 on export level was lower for GVC-involved firms and the subsequent recovery has been more intense

Outsourcing en las industrias tradicionales: determinantes de la estrategia

El objetivo de este trabajo es profundizar en la entidad y determinantes del outsourcing de producción en las manufacturas tradicionales españolas a través de un modelo de datos de panel dinámico. La fuente básica de información es la Encuesta Industrial de Empresas del INE. Se constata la creciente utilización de la estrategia de outsourcing de producción en las manufacturas tradicionales españolas, incluso por encima del resto de las ramas industriales. Los resultados de la estimación confirman el papel del outsourcing como una estrategia productiva dirigida a incrementar la eficiencia productiva y la competitividad, particularmente a través del ahorro en los costes laborales; no obstante, sus posibilidades de adopción están condicionadas por una serie de características estructurales de las empresas que provoca que sean las empresas con una mejor posición competitiva (bien por su tamaño, orientación de mercado o de la producción) las que se encuentran en mejores condiciones para llevarla a cabo. ABSTRACT The present paper investigates the relevance and determinants of outsourcing in the Spanish traditional manufacturing industries using a dynamic panel data model. Data are from Industrial Companies Survey. The analysis shows the growing use of outsourcing by Spanish traditional manufacture, even higher than the rest of the manufacturing industries. The estimation results provide empirical evidence of the cost-cutting motive for outsourcing which improves, by this way, the productive efficiency and the competitiveness of the firm; nevertheless, the possibilities of using this strategy are conditioned by some firms' structural characteristics which explain that those firms with a better competitive position (due to their size, their orientation of the market or of the production) are more prone to outsourcing

La dependencia importadora de la economía española

Using International Country Input-Output Tables this paper provides empirical evidence on the evolution of import content of the different components of global demand in Spain. Import content registered a significant increase since 1995 until trade collapsed in 2009; after the fall it recovered its pre-crisis levels in 2011. Spanish import penetration is lower than most European countries are, but higher than that of the four largest EU countries, particularly in high-tech industries. This higher import content might be explained by firm’s involvement in global value chains controlled by multinational companies as well as by firm’s engagement in international sourcing strategies to improve productivity and competitiveness. Finally, the deep dependence of final imports for high-tech industries reflects a lack of production capacity in those industries due to domestic technological weaknesses.Las estimaciones efectuadas a partir de las Tablas Input-Output Internacionales revelan que la dependencia importadora de la economía española, tras quebrar su tendencia creciente en 2009, recuperó rápidamente sus niveles previos a la crisis. Aunque en el conjunto europeo no parece especialmente elevada, supera a la de las economías centrales europeas, en especial, en las manufacturas de mayor intensidad tecnológica. Ello parece ser el resultado de una especialización productiva de carácter vertical, vinculada al capital extranjero, en la que las empresas españolas abordan las etapas de transformación y montaje, pero también del impulso a estrategias de abastecimiento externo con el objetivo de incrementar la productividad y competitividad. Adicionalmente, la elevada dependencia relativa de importaciones finales de alta tecnología refleja el insuficiente desarrollo de estas producciones en nuestro país

"Outsourcing" en la industria manufacturera española: nuevas estrategias para el nuevo siglo

El presente estudio analiza la incidencia del outsourcing en la industria española desde una perspectiva sectorial. Para ello se utilizan los datos de la Encuesta Industrial de Empresas, con un nivel de desagregación de la NACE a 3 dígitos en el periodo 1993-2002. La fragmentación de la producción o outsourcing es una novedosa estrategia de organización de la producción que consiste en dividir la cadena de valor en funciones cada vez más específicas y localizar cada una de ellas en los emplazamientos y productores más eficientes. Los resultados muestran que casi la mitad de las industrias manufactureras españolas están apostando por el outsourcing de producción interna, distinguiéndose distintas vías según el tipo de inputs intermedios que están externalizándose. El estudio pone especialmente de manifiesto como en los últimos años el outsourcing internacional se muestra más activo que el nacional. Se dedica una especial atención al sector del automóvil, una de las industrias pioneras y más involucrada en este proceso de segmentación y dispersión internacional de la cadena de valor

El offshoring en la industria española: una revisión de la evidencia empírica

La revisión de la literatura empírica del offshoring o fragmentación internacional de la producción pone de manifiesto su creciente difusión en la industria española, muy especialmente, en la segunda mitad de los noventa. Inicialmente más vinculada a las manufacturas más tradicionales, desde mediados de los noventa el offshoring se ha extendido e intensificado en las industrias de mayor contenido tecnológico. El análisis de sus determinantes destaca la relevancia de los costes laborales, refrendando que es una estrategia que, fundamentalmente, persigue el ahorro de costes laborales y la mejora de la eficiencia productiva. En cuanto al impacto negativo sobre el empleo nacional, a pesar de la proliferación de citas al respecto en los medios de comunicación, los trabajos disponibles constatan la escasa entidad relativa de las pérdidas de empleo industrial asociadas al fenómeno. Por último, se incorporan algunas consideraciones sobre el papel de la política industrial respecto a la estrategia

Outsourcing en las industrias tradicionales: determinantes de la estrategia

The present paper investigates the relevance and determinants of outsourcing in the Spanish traditional manufacturing industries using a dynamic panel data model. Data are from Industrial Companies Survey. The analysis shows the growing use of outsourcing by Spanish traditional manufacture, even higher than the rest of the manufacturing industries. The estimation results provide empirical evidence of the cost-cutting motive for outsourcing which improves, by this way, the productive efficiency and the competitiveness of the firm; nevertheless, the possibilities of using this strategy are conditioned by some firms� structural characteristics which explain that those firms with a better competitive position (due to their size, their orientation of the market or of the production) are more prone to outsourcing.El objetivo de este trabajo es profundizar en la entidad y determinantes del outsourcing de producción en las manufacturas tradicionales españolas a través de un modelo de datos de panel dinámico. La fuente básica de información es la Encuesta Industrial de Empresas del INE. Se constata la creciente utilización de la estrategia de outsourcing de producción en las manufacturas tradicionales españolas, incluso por encima del resto de las ramas industriales. Los resultados de la estimación confirman el papel del outsourcing como una estrategia productiva dirigida a incrementar la eficiencia productiva y la competitividad, particularmente a través del ahorro en los costes laborales; no obstante, sus posibilidades de adopción están condicionadas por una serie de características estructurales de las empresas que provoca que sean las empresas con una mejor posición competitiva (bien por su tamaño, orientación de mercado o de la producción) las que se encuentran en mejores condiciones para llevarla a cabo

OUTSOURCING EN LAS INDUSTRIAS TRADICIONALES: DETERMINANTES DE LA ESTRATEGIA

The present paper investigates the relevance and determinants of outsourcing in the Spanish traditional manufacturing industries using a dynamic panel data model. Data are from Industrial Companies Survey. The analysis shows the growing use of outsourcing by Spanish traditional manufacture, even higher than the rest of the manufacturing industries. The estimation results provide empirical evidence of the cost-cutting motive for outsourcing which improves, by this way, the productive efficiency and the competitiveness of the firm; nevertheless, the possibilities of using this strategy are conditioned by some firms' structural characteristics which explain that those firms with a better competitive position (due to their size, their orientation of the market or of the production) are more prone to outsourcing