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What happened to Foreign Outsourcing when Firms went Online?

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Author Info

  • Aoife Hanley, Ingrid Ott

Abstract

The possibility to outsource over the internet should revolutionize foreign outsourcing, especially for services (UNCTAD, 2004). Our model describes materials and services input allocation from domestic vs. foreign suppliers. Allocations change when firms outsource online due to access and competition effects. Using data for 99 firms who started outsourcing online in 2003 together with a control group (never outsourcing online) of over 682 Irish firms, we apply OLS and Propensity Score Matching with Difference-in-Differences to find that 42-48 percent of foreign services inputs growth arises from online outsourcing

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File URL: http://www.ifw-members.ifw-kiel.de/publications/what-happened-to-foreign-outsourcing-when-firms-went-online/KWP_1774.pdf
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Bibliographic Info

Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1774.

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Length: 29 pages
Date of creation: Jun 2012
Date of revision:
Handle: RePEc:kie:kieliw:1774

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Related research

Keywords: International Outsourcing; Propensity Score Matching; Input Price Uncertainty; Input Demand;

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  1. Laura Abramovsky & Rachel Griffith, 2005. "Outsourcing and offshoring of business services: how important is ICT?," IFS Working Papers W05/22, Institute for Fiscal Studies.
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