International Outsourcing and Productivity Growth
This study investigates the impact of international outsourcing to low? and high income countries on total factor productivity growth based on manufacturing industry data for 14 OECD countries from 1995 ? 2000. We find that the broad measure of international outsourcing of material inputs to low income countries is significantly negatively related to productivity growth. Furthermore, while the narrow measure of international outsourcing of materials is not significant, purchased services from abroad have a significant and positive effect on TFP growth. In particular, international services outsourcing accounted for 20 percent of the growth of total factor productivity in the manufacturing sector in the selected OECD countries.
|Date of creation:||Jun 2008|
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- Thijs Raa & Edward Wolff, 2001.
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WIFO Working Papers
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Canadian Journal of Economics,
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"Outsourcing, Foreign Ownership and Productivity: Evidence from UK Establishment Level Data,"
Discussion Papers of DIW Berlin
361, DIW Berlin, German Institute for Economic Research.
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- Mary Amiti & Shang-Jin Wei, 2006. "Service Offshoring and Productivity: Evidence from the United States," NBER Working Papers 11926, National Bureau of Economic Research, Inc.
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