Productivity effects of international outsourcing: evidence from plant-level data

Authors: Görg, Holger¹; Hanley, Aoife¹; Strobl, Eric²

Source: Canadian Journal of Economics, Volume 41, Number 2, May/mai 2008 , pp. 670-688(19)

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Abstract:

Abstract.

We investigate the impact of international outsourcing on productivity using plant-level data for Irish manufacturing. Specifically, we distinguish the effect of outsourcing of materials from services inputs. Moreover, we examine whether the impact on productivity is different for plants being more embedded in international markets through exporting or being part of a multinational. Our results show robust evidence for positive effects from outsourcing of services inputs for exporters, either domestic or foreign owned. By contrast, we find no statistically significant evidence of an impact of international outsourcing of services on productivity for firms not operating on the export market.

Keywords: F14; F23; L23

Document Type: Research article

DOI: http://dx.doi.org/10.1111/j.1540-5982.2008.00481.x

Affiliations: 1: Kiel Institute of the World Economy and University of Kiel 2: École Polytechnique Paris

Publication date: 2008-05-01