Outsourcing of services and the productivity recovery in U.S. manufacturing in the 1980s and 1990s
AbstractManufacturing productivity growth recovered during the 1980s and 1990s, while other sectors, particularly services, did not. In the same period U.S. manufacturing has engaged in the "outsourcing" or "contracting-out" of service functions. Has the recovery of manufacturing been accomplished by industrial reorganization - sloughing off sluggish services - rather than technical progress? We analyze this question by reducing service inputs to their constituent elements of material inputs. Service productivity growth is thus imputed to the goods sectors, reducing the recovery of manufacturing productivity growth in the 1980s by one fifth. The recovery lasted through the 1990s, when high productivity performers in manufacturing have been relatively successful at outsourcing sluggish services.
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Bibliographic InfoPaper provided by Tilburg University in its series Open Access publications from Tilburg University with number urn:nbn:nl:ui:12-86783.
Date of creation: 2001
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Publication status: Published in Journal of Productivity Analysis (2001) v.16, p.149-165
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Other versions of this item:
- Raa, T. ten & Wolff, E.N., 2000. "Outsourcing of Services and the Productivity Recovery in U.S. Manufacturing in the 1980s and 1990s," Discussion Paper 2000-32, Tilburg University, Center for Economic Research.
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