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What factors determine the outsourcing intensity? A dynamic panel data approach for manufacturing industries

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  • Carmen Diaz-Mora

Abstract

The present article investigates the determinants of outsourcing production using a panel of 93 Spanish manufacturing industries for the period 1993 to 2002. Outsourcing is measured as production tasks which are contracting out to external suppliers, a more direct and suitable indicator. After controlling for unobserved heterogeneity and simultaneity, our results show a high persistence of the outsourcing intensity. Moreover, outsourcing of production is positively related to unit labour costs, skills requirements, national ownership and orientation to international markets. We also find evidence for a negative link between the outsourcing intensity and the share of small firms.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600970179
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 40 (2008)
Issue (Month): 19 ()
Pages: 2509-2521

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Handle: RePEc:taf:applec:v:40:y:2008:i:19:p:2509-2521

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Cited by:
  1. Christian Keuschnigg & Evelyn Ribi, 2007. "Outsourcing, Unemployment and Welfare Policy," University of St. Gallen Department of Economics working paper series 2007 2007-41, Department of Economics, University of St. Gallen.
  2. Raphael Auer & Kathrin Degen & Andreas M. Fischer, 2011. "Low-Wage Import Competition, Inflationary Pressure, and Industry Dynamics in Europe," Working Papers 11.02, Swiss National Bank, Study Center Gerzensee.
  3. Roger Strange, 2011. "The outsourcing of primary activities: theoretical analysis and propositions," Journal of Management and Governance, Springer, vol. 15(2), pages 249-269, May.

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