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Outsourcing and productivity: Evidence from Korean data

  • Lin, Songhua
  • Ma, Alyson C.
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    This paper aims to provide the first investigation of the productivity effect of outsourcing by using the Korean industry data at the three-digit ISIC level. We find that there are positive productivity gains from material outsourcing. The impact of material outsourcing increases when we account for the share of imports from China. This is due to the growth of Chinese exports to Korea over the recent years. Moreover, the results also suggest that during our sample period Korea's experiment with service outsourcing did not lead to an increase in its productivity.

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    File URL: http://www.sciencedirect.com/science/article/pii/S1049007811001096
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    Article provided by Elsevier in its journal Journal of Asian Economics.

    Volume (Year): 23 (2012)
    Issue (Month): 1 ()
    Pages: 39-49

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    Handle: RePEc:eee:asieco:v:23:y:2012:i:1:p:39-49
    Contact details of provider: Web page: http://www.elsevier.com/locate/asieco

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