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Productivity effects of international outsourcing: evidence from plant‐level data

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Listed:
  • Holger Görg
  • Aoife Hanley
  • Eric Strobl

Abstract

. We investigate the impact of international outsourcing on productivity using plant‐level data for Irish manufacturing. Specifically, we distinguish the effect of outsourcing of materials from services inputs. Moreover, we examine whether the impact on productivity is different for plants being more embedded in international markets through exporting or being part of a multinational. Our results show robust evidence for positive effects from outsourcing of services inputs for exporters, either domestic or foreign owned. By contrast, we find no statistically significant evidence of an impact of international outsourcing of services on productivity for firms not operating on the export market. On examine l'impact de la sous‐traitance internationale sur la productivité en utilisant des données sur les établissements irlandais. On distingue la sous‐traitance d'intrants qui sont des biens matériels de celle d'intrants de services. On distingue aussi les établissements encastrés dans les marchés internationaux via des liens d'exportations de ceux qui sont parties d'une firme plurinationale. Les résultats montrent des effets importants de la sous‐traitance des intrants‐services sur la productivité des exportateurs qu'ils soient indépendants ou parties d'une plurinationale. D'autre part, on ne trouve pas de relation statistique significative entre la sous‐traitance des intrants‐services et la productivité pour les entreprises qui n'opèrent pas sur le marché des exportations.

Suggested Citation

  • Holger Görg & Aoife Hanley & Eric Strobl, 2008. "Productivity effects of international outsourcing: evidence from plant‐level data," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 41(2), pages 670-688, May.
  • Handle: RePEc:wly:canjec:v:41:y:2008:i:2:p:670-688
    DOI: 10.1111/j.1540-5982.2008.00481.x
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    More about this item

    JEL classification:

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

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