DELOCALIZATION OF CZECH MANUFACTURING: WHICH BRANCHES OF MANUFACTURING ARE THREATENED BY RELOCATION ABROAD?
Abstract
This paper examines international relocation determinants of Czech manufacturing companies in order to estimate the probability of potential delocalizations. The research is based on statistical evaluation of "internal keep-factors" (particular company features strengthening the location inertia of manufacturing), which are divided into three main groups - capital intensity, complexity of value chain and business sophistication.
Keep-factors were examined on the company level and represented by six financial indicators. The sample covers 692 Czech manufacturing companies (foreign owned) with one hundred or more employees.
The main goal is to identify branches of manucaturing threatened by delocalization. Manufacturing companies with low capital intensity, low value added/output ratio, high relative wages expenditures and no R&D activities are regarded as footloose - with high probability of potential relocation.