IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper

Purchased Services, Outsourcing, Computers, and Productivity in Manufacturing

  • Donald Siegel
  • Zvi Griliches

Increases in purchased services, foreign outsourcing, and investments in computers are alleged to have resulted in an understatement of input growth in manufacturing, and thus. overstatement of growth in productivity. GNP, and value-added in industries heavily engaged in these activities. Based on Census Bureau data, we examine whether the recent (post-1979) improvement in measured manufacturing productivity growth can be attributed to an increase in the rate of foreign and domestic outsourcing. Our preliminary evidence, based on data that are not comprehensive, suggests that an industry's propensity to outsource is unrelated to its acceleration in productivity. In auditing the industry numbers, we found that a non-negligible number of sectors were not consistently defined over time. Using industry and establishment-level data sets (the NBER 4-digit SIC Productivity data set and the Longitudinal Research Database), we conclude that some of these anomalies may be due to the general decline in the magnitude of information solicited from establishments by the Census Bureau in conducting its economic surveys. Another consistency problem explored in this paper is the industry reclassification of large plants. Although these definitional and sampling problems are troubling and need to be carefully documented, there does not appear to be a systematic relationship between an industry's post-1979 productivity growth and attrition or "switches" in its ASM plants. We do find, however, positive and statistically significant relationship between total factor productivity growth and an industry's rate of investment in Computers.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.nber.org/papers/w3678.pdf
Download Restriction: no

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 3678.

as
in new window

Length:
Date of creation: Apr 1991
Date of revision:
Publication status: published as Output Measurement in the Service Sectors, ed. Zvi Griliches. Chicago: University of Chicago Press, UCP 1992, pp.429-458.
Handle: RePEc:nbr:nberwo:3678
Note: PR
Contact details of provider: Postal:
National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.

Phone: 617-868-3900
Web page: http://www.nber.org
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Zvi Griliches & Frank R. Lichtenberg, 1984. "R&D and Productivity Growth at the Industry Level: Is There Still a Relationship?," NBER Chapters, in: R&D, Patents, and Productivity, pages 465-502 National Bureau of Economic Research, Inc.
  2. Robert H Mcguckin & George A Pascoe, 1988. "The Longitudinal Research Database (LRD): Status And Research Possibilities," Working Papers 88-2, Center for Economic Studies, U.S. Census Bureau.
  3. Frank R. Lichtenberg & Zvi Griliches, 1986. "Errors of Measurement in Output Deflators," NBER Working Papers 2000, National Bureau of Economic Research, Inc.
  4. Martin Neil Baily & Robert J. Gordon, 1988. "The Productivity Slowdown, Measurement Issues, and the Explosion of Computer Power," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 19(2), pages 347-432.
  5. John M. Abowd, 1990. "The NBER Immigration, Trade, and Labor Markets Data Files," NBER Working Papers 3351, National Bureau of Economic Research, Inc.
  6. Lichtenberg, Frank R & Siegel, Donald, 1990. "The Effect of Ownership Changes on the Employment and Wages of Central Office and Other Personnel," Journal of Law and Economics, University of Chicago Press, vol. 33(2), pages 383-408, October.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:3678. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.