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DETERMINANTS OF OUTSOURCING PRODUCTION: A Dynamic Panel Data Approach for Manufacturing Industries

Author

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  • Carmen Díaz-Mora

    (University of Castilla-La Mancha, Department of Economics and Business)

Abstract

The present paper investigates the determinants of outsourcing production using a panel of 93 Spanish manufacturing industries for the period 1993-2002. Outsourcing is measured as production tasks which are contracting out to independent 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 and national ownership.

Suggested Citation

  • Carmen Díaz-Mora, 2005. "DETERMINANTS OF OUTSOURCING PRODUCTION: A Dynamic Panel Data Approach for Manufacturing Industries," Working Papers 05-07, Asociación Española de Economía y Finanzas Internacionales.
    • Handle: RePEc:aee:wpaper:0507
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    References listed on IDEAS

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    2. Tomiura, Eiichi, 2005. "Foreign outsourcing and firm-level characteristics: Evidence from Japanese manufacturers," Journal of the Japanese and International Economies, Elsevier, vol. 19(2), pages 255-271, June.
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    Cited by:

    1. Roberto Antonietti & Giulio Cainelli, 2008. "Production Outsourcing, Organizational Governance and Firm’s Technological Performance: Evidence from Italy," The IUP Journal of Managerial Economics, IUP Publications, vol. 0(1), pages 51-69, February.
    2. Ann Bartel & Saul Lach & Nachum Sicherman, 2005. "Outsourcing and Technological Change," NBER Working Papers 11158, National Bureau of Economic Research, Inc.
    3. Christian Keuschnigg, 2008. "Corporate Taxation and the Welfare State," Working Papers 0813, Oxford University Centre for Business Taxation.
    4. Bartel, Ann & Lach, Saul & Sicherman, Nachum, 2008. "Outsourcing and Technological Innovations: A Firm-Level Analysis," CEPR Discussion Papers 6731, C.E.P.R. Discussion Papers.
    5. Appiah-Adu, Kwaku & Okpattah, Bernard K. & Djokoto, Justice G., 2016. "Technology transfer, outsourcing, capability and performance: A comparison of foreign and local firms in Ghana," Technology in Society, Elsevier, vol. 47(C), pages 31-39.

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    More about this item

    Keywords

    Outsourcing; Manufacturing Industries; Subcontracting; Unit Labour Costs;
    All these keywords.

    JEL classification:

    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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