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Productivity Growth, Efficiency and Outsourcing in Manufacturing and Service Industries

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Author Info
Almas Heshmati (The United Nations University, Wider)

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Abstract

This paper is a survey of recent contributions to, and developments of, the relationship between outsourcing, efficiency and productivity growth in manufacturing and services. The objective is to provide a thorough and up--to--date survey that provides a significant discussion on data, as well as on the core methods of measuring efficiency and productivity. First, the readers are introduced to the measurement of partial and total factor productivity growth. Different parametric and non--parametric approaches to the productivity measurement in the context of static, dynamic and firm--specific modelling are discussed. Second, we survey the econometric approach to efficiency analysis. The issues of modelling, distributional assumptions and estimation methods are discussed assuming that cross--sectional or panel data are available. Third, the relationship between outsourcing and productivity growth in manufacturing and services is discussed. The correspondence between a number of hypotheses and empirical findings are examined. Examples of varieties of relevant empirical applications, their findings and implications are presented. Fourth, measurement of inputs and outputs in manufacturing and services are discussed. Finally, to promote useful research, a number of factors important to the analysis of outsourcing, efficiency and productivity growth in the service sector are summarised. Copyright Blackwell Publishing Ltd. 2003

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Publisher Info
Article provided by Blackwell Publishing in its journal Journal of Economic Surveys.

Volume (Year): 17 (2003)
Issue (Month): 1 (February)
Pages: 79-112
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Handle: RePEc:bla:jecsur:v:17:y:2003:i:1:p:79-112

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0950-0804

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  1. Yongsung Chang & Jay H. Hong, 2006. "Do Technological Improvements in the Manufacturing Sector Raise or Lower Employment?," American Economic Review, American Economic Association, vol. 96(1), pages 352-368, March. [Downloadable!]
    Other versions:
  2. Bhandari, Amit & Heshmati, Almas, 2006. "Wage Inequality and Job Insecurity among Permanent and Contract Workers in India: Evidence from Organized Manufacturing Industries," Ratio Working Papers 88, The Ratio Institute. [Downloadable!]
    Other versions:
  3. Rosario Crino, 2006. "Are U.S. White-Collar Really at Risk of Service Offshoring?," CESPRI Working Papers 183, CESPRI, Centre for Research on Innovation and Internationalisation, Universita' Bocconi, Milano, Italy, revised Oct 2006. [Downloadable!]
  4. Tausch, Arno, 2008. "The Efficiency of Social Expenditures in the Fight Against Extreme Poverty in Europe [Die Effizienz Der Sozialausgaben Im Kampf Gegen Extreme Armut in Europa]," MPRA Paper 10612, University Library of Munich, Germany. [Downloadable!]
  5. Holger Görg & Aoife Hanley, 2004. "Does Outsourcing Increase Profitability?," The Economic and Social Review, Economic and Social Studies, vol. 35(3), pages 267-288. [Downloadable!]
    Other versions:
  6. Spitz, Alexandra & Bertschek, Irene, 2003. "IT, Organizational Change and Wages," ZEW Discussion Papers 03-69, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  7. Roberto Antonietti & Giulio Cainelli, 2007. "Production Outsourcing, Organizational Governance and Firm’s Technological Performance: Evidence from Italy," Working Papers 2007.58, Fondazione Eni Enrico Mattei. [Downloadable!]
    Other versions:
  8. Bernd Görzig & Andreas Stephan, 2002. "Outsourcing and Firm-level Performance," Discussion Papers of DIW Berlin 309, DIW Berlin, German Institute for Economic Research. [Downloadable!]
    Other versions:
  9. Almas Heshmati, 2007. "A Model for Industrial Development of the Federal Region of Kurdistan: Science and Technology Policy, Instruments and Institutions," IZA Discussion Papers 3213, Institute for the Study of Labor (IZA). [Downloadable!]
  10. Girma, Sourafel & Görg, Holger, 2006. "Multinationals' Productivity Advantage: Scale or Technology," CEPR Discussion Papers 5841, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  11. TAUSCH, Arno, 2008. "On the world market trajectory of 21 major book publishing companies in globalization and European studies in 100+ countries. From “Amsterdam University Press” via “Palgrave” and “Nova Scien," MPRA Paper 9613, University Library of Munich, Germany. [Downloadable!]
  12. Grout, Paul A., 2005. "Value-for-money measurement in public-private partnerships," EIB Papers 7/2005, European Investment Bank, Economic and Financial Studies. [Downloadable!]
  13. Almas Heshmati, 2007. "Labor Market Policy Options of the Kurdistan Regional Government," IZA Discussion Papers 3247, Institute for the Study of Labor (IZA). [Downloadable!]
  14. Oleg Badunenko & Michael Fritsch & Andreas Stephan, 2006. "What Determines the Technical Efficiency of a Firm? The Importance of Industry, Location, and Size," Jenaer Schriften zur Wirtschaftswissenschaft 33/2006, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät. [Downloadable!]
  15. Heshmati, Almas & Haouas, Ilham, 2003. "The Effects of Union Wage-Settings on Firms' Production Factor Decisions," IZA Discussion Papers 689, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
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