Purchased Services, Outsourcing, Computers, and Productivity in Manufacturing
In: Output Measurement in the Service Sectors
AbstractIncreases in purchased services, foreign outsourcing, and investments in computers are alleged to have resulted in an understatement of input growth in manufacturing, and thus. overstatement of growth in productivity. GNP, and value-added in industries heavily engaged in these activities. Based on Census Bureau data, we examine whether the recent (post-1979) improvement in measured manufacturing productivity growth can be attributed to an increase in the rate of foreign and domestic outsourcing. Our preliminary evidence, based on data that are not comprehensive, suggests that an industry's propensity to outsource is unrelated to its acceleration in productivity. In auditing the industry numbers, we found that a non-negligible number of sectors were not consistently defined over time. Using industry and establishment-level data sets (the NBER 4-digit SIC Productivity data set and the Longitudinal Research Database), we conclude that some of these anomalies may be due to the general decline in the magnitude of information solicited from establishments by the Census Bureau in conducting its economic surveys. Another consistency problem explored in this paper is the industry reclassification of large plants. Although these definitional and sampling problems are troubling and need to be carefully documented, there does not appear to be a systematic relationship between an industry's post-1979 productivity growth and attrition or "switches" in its ASM plants. We do find, however, positive and statistically significant relationship between total factor productivity growth and an industry's rate of investment in Computers.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
This chapter was published in:
This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number 7241.
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Other versions of this item:
- Donald Siegel & Zvi Griliches, 1991. "Purchased Services, Outsourcing, Computers, and Productivity in Manufacturing," NBER Working Papers 3678, National Bureau of Economic Research, Inc.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.