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International Outsourcing and Productivity Growth

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  • Martin Falk

Abstract

This study investigates the impact of international outsourcing to low and high income countries on total factor productivity (TFP) growth based on manufacturing industry data for 14 OECD countries for the period 1995-2000. We find that both the broad and narrow measure of international outsourcing of material inputs to low income countries are not significantly related to total factor productivity growth. In contrast, there is significant impact of purchased services from abroad on TFP growth. In particular, purchased services from abroad account for 20 percent of total factor productivity growth in the manufacturing sector in the selected OECD countries.

Suggested Citation

  • Martin Falk, 2012. "International Outsourcing and Productivity Growth," Review of Economics and Institutions, Università di Perugia, vol. 3(1).
    • Handle: RePEc:pia:review:v:3:y:2012:i:1:n:3
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    File URL: https://rei.unipg.it/rei/article/view/54
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    Cited by:

    1. Michael Klien & Michael Böheim & Matthias Firgo & Andreas Reinstaller & Peter Reschenhofer & Yvonne Wolfmayr, 2021. "Stärkung der Unabhängigkeit des Wirtschaftsstandortes Österreich bei kritischen Produkten," WIFO Studies, WIFO, number 67234, October.
    2. repec:mbr:jmonec:v:8:y:2013:i:1:p:109-139 is not listed on IDEAS

    More about this item

    Keywords

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    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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