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Outsourcing and Structural Change: What Can Input-Output Analysis Say About It?

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  • Sandro Montresor
  • Giuseppe Vittucci Marzetti

Abstract

The paper aims at investigating the capacity of input-output analysis to identify the structural change implications of outsourcing. In particular, it develops the idea that outsourcing leaves "traces" in the intersectoral structure of one economy that can be caught empirically, to a different extent by different indicators. The pros and cons of these indicators are discussed from a methodological point of view and their actual interpretative power shown through an application to the OECD area for the '80s and the early '90s. The main result of the paper is that an accurate mapping of the relationship between outsourcing and structural change requires us to use different indicators jointly, rather than alternatively. In particular, a purely sectoral kind of perspective needs to be combined with a subsystem one, which detects the effects of outsourcing on the vertical integration degree of one economy's sectors.

Suggested Citation

  • Sandro Montresor & Giuseppe Vittucci Marzetti, 2007. "Outsourcing and Structural Change: What Can Input-Output Analysis Say About It?," Economia politica, Società editrice il Mulino, issue 1, pages 43-78.
  • Handle: RePEc:mul:jb33yl:doi:10.1428/24089:y:2007:i:1:p:43-78
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    Cited by:

    1. Daria Ciriaci & Daniela Palma, 2012. "To what extent are knowledge-intensive business services contributing to manufacturing? A subsystem analysis," JRC Working Papers on Corporate R&D and Innovation 2012-02, Joint Research Centre (Seville site).
    2. Sandro Montresor & Giuseppe Vittucci Marzetti, 2011. "The deindustrialisation/tertiarisation hypothesis reconsidered: a subsystem application to the OECD7," Cambridge Journal of Economics, Oxford University Press, vol. 35(2), pages 401-421.
    3. Garbellini, Nadia, 2009. "Natural rates of profit, natural prices, and the actual economic systems - a theoretical framework," MPRA Paper 15941, University Library of Munich, Germany.
    4. Garbellini, Nadia, 2010. "Structural Change and Economic Growth: Production in the Short Run — A generalisation in terms of vertically hyper-integrated sectors," MPRA Paper 25684, University Library of Munich, Germany.
    5. Daria Ciriaci & Sandro Montresor & Daniela Palma, 2013. "Do KIBS make manufacturing more innovative? An empirical investigation for four European countries," JRC Working Papers on Corporate R&D and Innovation 2013-04, Joint Research Centre (Seville site).

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