The determinants and employment effects of international outsourcing: the case of Italy
Using a new firm-level database, we address micro determinants and employment consequences of international production outsourcing (INPOU). Regarding the former, we confirm that INPOU in Italy mostly counters emerging economies. threats to traditional manufactured goods: INPOU disproportionately targets developing countries and intensifies in sectors with stiffest Chinese competition. Concerning employment consequences, we concur with previous literature that INPOU firms. domestic employment performances are no worse than at matching no-INPOU firms. However, given Italy.s industrial structure (small-sized networked enterprises), INPOU might negatively affect subcontracting firms. Our evidence that employment performances worsen in the productive segments with strongest INPOU supports our conjecture.
|Date of creation:||Apr 2007|
|Date of revision:||Apr 2007|
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- Stefano Federico & Gaetano Alfredo Minerva, 2007.
"Outward FDI and local employment growth in Italy,"
Temi di discussione (Economic working papers)
613, Bank of Italy, Economic Research and International Relations Area.
- Stefano Federico & Gaetano Alfredo Minerva, 2008. "Outward FDI and Local Employment Growth in Italy," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 144(2), pages 295-324, July.
- Sergio Mariotti & Marco Mutinelli & Lucia Piscitello, 2003. "Home country employment and foreign direct investment: evidence from the Italian case," Cambridge Journal of Economics, Oxford University Press, vol. 27(3), pages 419-431, May.
- Konings, Jozef & Murphy, Alan, 2001. "Do Multinational Enterprises Substitute Parent Jobs for Foreign Ones? Evidence from European Firm Level Panel Data," CEPR Discussion Papers 2972, C.E.P.R. Discussion Papers.
- Amiti, Mary & Wei, Shang-Jin, 2004. "Fear of Outsourcing: Is It Justified?," CEPR Discussion Papers 4719, C.E.P.R. Discussion Papers.
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