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International Outsourcing and Productivity in Italian Manufacturing Sectors

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  • Alessia Lo Turco

Abstract

This paper estimates the effect of international outsourcing of materials and services on productivity in Italian manufacturing sectors during the period 1985-1997. Three different measures of outsourcing are used. Firstly, a "narrow" measure of outsourcing is calculated as the intensity of intermediate inputs that each sector imports from the same sector abroad. Secondly, a "broad" measure of outsourcing of materials is calculated as the intensity of materials imported from non-energy manufacturing sectors abroad. Finally, outsourcing of services is measured as the total imported business and financial services. Outsourcing is modelled as to affect TFP and the results suggest a general positive effect of outsourcing of materials. The effect of outsourcing of services seems to be ambiguous: it is positive for the traditional sectors and negative for the advanced sectors.

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  • Alessia Lo Turco, 2007. "International Outsourcing and Productivity in Italian Manufacturing Sectors," Rivista italiana degli economisti, Società editrice il Mulino, issue 1, pages 125-146.
  • Handle: RePEc:mul:jqat1f:doi:10.1427/26275:y:2007:i:1:p:125-146
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    Cited by:

    1. Giuliano Conti & Alessia Lo Turco & Daniela Maggioni, 2014. "Rethinking the import-productivity nexus for Italian manufacturing," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(4), pages 589-617, November.
    2. Roberto Antonietti, 2016. "From outsourcing to productivity, passing through training: microeconometric evidence from Italy," Industry and Innovation, Taylor & Francis Journals, vol. 23(5), pages 407-425, July.
    3. Mariotti, Sergio & Nicolini, Marcella & Piscitello, Lucia, 2013. "Vertical linkages between foreign MNEs in service sectors and local manufacturing firms," Structural Change and Economic Dynamics, Elsevier, vol. 25(C), pages 133-145.

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