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The determinants and employment effects of international outsourcing: the case of Italy

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Author Info
Stefano Costa () (ISAE - Rome.)
Giovanni Ferri (University of Bari.)

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Abstract

Using a new firm-level database, we address micro determinants and employment consequences of international production outsourcing (INPOU). Regarding the former, we confirm that INPOU in Italy mostly counters emerging economies. threats to traditional manufactured goods: INPOU disproportionately targets developing countries and intensifies in sectors with stiffest Chinese competition. Concerning employment consequences, we concur with previous literature that INPOU firms. domestic employment performances are no worse than at matching no-INPOU firms. However, given Italy.s industrial structure (small-sized networked enterprises), INPOU might negatively affect subcontracting firms. Our evidence that employment performances worsen in the productive segments with strongest INPOU supports our conjecture.

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File URL: http://www.dse.uniba.it/Quaderni/SERIES/WP_0016.pdf
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Publisher Info
Paper provided by Dipartimento di Scienze Economiche - Università di Bari in its series series with number 0016.

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Length: 20
Date of creation: Apr 2007
Date of revision: Apr 2007
Handle: RePEc:bai:series:wp0016

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Related research
Keywords: international outsourcing; multinational firms;

Find related papers by JEL classification:
F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
D21 - Microeconomics - - Production and Organizations - - - Firm Behavior

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Amiti, Mary & Wei, Shang-Jin, 2004. "Fear of Outsourcing: Is It Justified?," CEPR Discussion Papers 4719, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  2. Konings, Jozef & Murphy, Alan, 2001. "Do Multinational Enterprises Substitute Parent Jobs for Foreign Ones? Evidence from European Firm Level Panel Data," CEPR Discussion Papers 2972, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  3. S. Federico & G.A. Minerva, 2006. "Outward FDI and Local Employment Growth in Italy," Working Papers 572, Dipartimento Scienze Economiche, Universita' di Bologna. [Downloadable!]
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  4. Sergio Mariotti & Marco Mutinelli & Lucia Piscitello, 2003. "Home country employment and foreign direct investment: evidence from the Italian case," Cambridge Journal of Economics, Oxford University Press, vol. 27(3), pages 419-431, May.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Anna M. Falzoni & Lucia Tajoli, 2008. "Offshoring and the skill composition of employment in the Italian manufacturing industries," CESPRI Working Papers 219, CESPRI, Centre for Research on Innovation and Internationalisation, Universita' Bocconi, Milano, Italy, revised Jul 2008. [Downloadable!]
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