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International Outsourcing and Productivity in Italian Manufacturing Sectors

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Author Info

  • Alessia LO TURCO

    ()
    (Universita' Politecnica delle Marche)

Abstract

This paper estimates the effect of international outsourcing of materials and services on productivity in Italian manufacturing sectors during the period 1985-1997. Three different measures of outsourcing are used. Firstly, a "narrow" measure of outsourcing is calculated as the intensity of intermediate inputs that each sector imports from the same sector abroad. Secondly, a "broad" measure of outsourcing of materials is calculated as the intensity of materials imported from non-energy manufacturing sectors abroad. Finally, outsourcing of services is measured as the total imported business and financial services. Outsourcing is modelled as to affect TFP and the results suggest a general positive effect of outsourcing of materials. The effect of outsourcing of services seems to be ambiguous: it is positive for the traditional sectors and negative for the advanced sectors.

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Bibliographic Info

Article provided by SIE - Societa' Italiana degli Economisti (I) in its journal Rivista Italiana degli Economisti.

Volume (Year): 12 (2007)
Issue (Month): 1 (April)
Pages: 125-146

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Handle: RePEc:rie:review:v:12:y:2007:i:1:n:4

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Cited by:
  1. Mariotti, Sergio & Nicolini, Marcella & Piscitello, Lucia, 2013. "Vertical linkages between foreign MNEs in service sectors and local manufacturing firms," Structural Change and Economic Dynamics, Elsevier, vol. 25(C), pages 133-145.
  2. Roberto Antonietti, 2014. "From Outsourcing to Productivity, Passing Through Training: Microeconometric Evidence from Italy," Working Papers 2014.12, Fondazione Eni Enrico Mattei.
  3. Ricotta, Fernanda, 2010. "Global Value Chain Indicators: Application to the Italian Sectors - Gli indicatori della global value chain: un’applicazione ai settori italiani," Economia Internazionale / International Economics, Camera di Commercio di Genova, vol. 63(4), pages 423-450.
  4. Sandro Montresor & Davide Antonioli & Massimiliano Mazzanti & Paolo Pini, 2009. "Outsourcing and firm productivity: evidence for an Italian local production system," Openloc Working Papers 0907, Public policies and local development.

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