On the Probabilities and Determinants of Global Sourcing in Korean Industry
Based on a recently constructed firm-level panel dataset, Survey of Business Activities,
2006~08, from the National Statistics Office(NSO), we empirically analyzed probabilities and
determinants of global sourcing in Korean industry by setting up a panel logit model and a
panel tobit model.
This paper is likely the first attempt to utilize firm-level panel dataset in the study of global
sourcing, which can be regarded as an important step forward in this field in the sense that
the dataset could correct the chronic distortion that conventional Input-Output data causes,
which has been taken to substantially overestimate global sourcing since, besides global
sourcing, it also includes ordinary trade not classified to global sourcing.