International Outsourcing and Productivity Growth
AbstractThis study investigates the impact of international outsourcing to low and high income countries on total factor productivity (TFP) growth based on manufacturing industry data for 14 OECD countries for the period 1995-2000. We find that both the broad and narrow measure of international outsourcing of material inputs to low income countries are not significantly related to total factor productivity growth. In contrast, there is significant impact of purchased services from abroad on TFP growth. In particular, purchased services from abroad account for 20 percent of total factor productivity growth in the manufacturing sector in the selected OECD countries.
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Bibliographic InfoArticle provided by Università di Perugia, Dipartimento Economia, Finanza e Statistica in its journal Review of Economics and Institutions.
Volume (Year): 3 (2012)
Issue (Month): 1 ()
international outsourcing; purchased services from abroad; total factor productivity growth;
Other versions of this item:
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
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