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Outsourcing Foreign Services and the Internet: Evidence from Firm Level Data

Author

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  • Holger Görg

    (Institut für Weltwirtschaft, Kiel, Germany; Christian Albrechts University, Kiel, Germany)

  • Aoife Hanley

    (Institut für Weltwirtschaft, Kiel, Germany; Christian Albrechts University, Kiel, Germany)

  • Ingrid Ott

    (Institut für Weltwirtschaft, Kiel, Germany; Karlsruhe Institute of Technology, Germany)

Abstract

We analyse the link between internet use and foreign sourcing of services and materials inputs. In our empirical analysis using firm level data for Ireland we find, among firms that a priori all purchase inputs abroad, that those who commenced outsourcing from suppliers over the internet (“Adopters”) experience significantly higher growth rates of services offshoring. This result shows in a variety of econometric methods (OLS, Propensity Scoring (Kernel, Nearest Neighbour and Caliper Matching)). Adopting the internet for outsourcing induced an increase in the share of foreign services by 3.2-4.0 per cent.

Suggested Citation

  • Holger Görg & Aoife Hanley & Ingrid Ott, 2015. "Outsourcing Foreign Services and the Internet: Evidence from Firm Level Data," The Economic and Social Review, Economic and Social Studies, vol. 46(3), pages 367-387.
  • Handle: RePEc:eso:journl:v:46:y:2015:i:3:p:367-387
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    References listed on IDEAS

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    outsourcing; internet; Ireland;
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