Buyers’ Sourcing Strategies and Suppliers’ Markups in Bangladeshi Garments

IF 11.1 1区 经济学 Q1 ECONOMICS Quarterly Journal of Economics Pub Date : 2023-06-27 DOI:10.1093/qje/qjad026
Julia Cajal-Grossi, Rocco Macchiavello, Guillermo Noguera
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引用次数: 7

Abstract

We study differences in markups earned by Bangladeshi garment exporters across buyers with different sourcing strategies and make three contributions. First, we distinguish buyers with a relational versus a spot sourcing strategy and show that a buyer’s sourcing strategy is correlated across products and origins. Buyer fixed effects explain most of the variation in sourcing strategies, suggesting that these depend on organizational capabilities. Second, we use novel data that match quantities and prices of the two main variable inputs in the production of garments (fabric and labor on sewing lines) to specific export orders. We derive conditions under which these data allow measurement of within exporter–product–time differences in markups across orders produced for different buyers. Third, we show that exporters earn higher markups on otherwise identical orders produced for relational, as opposed to spot, buyers. A sourcing model with imperfect contract enforcement, idiosyncratic shocks to exporters, and buyers that adopt different sourcing strategies trading off higher prices and reliable supply rationalizes this and other observed facts in the industry. We discuss alternative explanations and policy implications.
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孟加拉服装买家采购策略与供应商加价
我们研究了孟加拉国服装出口商在不同采购策略的买家之间赚取的加价差异,并做出了三个贡献。首先,我们区分了采用关系采购策略和现货采购策略的买家,并表明买家的采购策略在产品和产地之间是相关的。买方固定效应解释了采购策略的大部分变化,表明这些变化取决于组织能力。其次,我们使用新颖的数据,将服装生产中的两个主要变量投入(面料和缝纫线上的劳动力)的数量和价格与特定的出口订单相匹配。我们推导了这些数据允许在出口商产品时间内为不同买家生产的订单加价差异的测量条件。第三,我们表明出口商在为关系买家而不是现货买家生产的相同订单上获得更高的利润。一个不完善的合同执行,对出口商的特殊冲击,以及采用不同采购策略的买家在更高的价格和可靠的供应之间进行交易的采购模型,使这一现象和其他观察到的行业事实合理化。我们讨论了不同的解释和政策含义。
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来源期刊
CiteScore
24.20
自引率
2.20%
发文量
42
期刊介绍: The Quarterly Journal of Economics stands as the oldest professional journal of economics in the English language. Published under the editorial guidance of Harvard University's Department of Economics, it comprehensively covers all aspects of the field. Esteemed by professional and academic economists as well as students worldwide, QJE holds unparalleled value in the economic discourse.
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