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The determinants and employment effects of international outsourcing: the case of Italy

  • Giovanni Ferri

    (Università di Bari)

  • Giovanni Costa

    ()

    (ISAE Rome)

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.

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File URL: http://www.dse.uniba.it/Quaderni/SERIES/WP_0016.pdf
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Paper provided by Dipartimento di Scienze Economiche e Metodi Matematici - Università di Bari in its series series with number 0016.

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Length: 707
Date of creation: Apr 2007
Date of revision: Apr 2007
Handle: RePEc:bai:series:wp0016
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  1. 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.
  2. Amiti, Mary & Wei, Shang-Jin, 2004. "Fear of Outsourcing: Is It Justified?," CEPR Discussion Papers 4719, C.E.P.R. Discussion Papers.
  3. 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.
  4. 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.
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