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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- Görg, Holger & Hanley, Aoife & Strobl, Eric, 2007.
"Productivity Effects of International Outsourcing: Evidence from Plant Level Data,"
CEPR Discussion Papers
6361, C.E.P.R. Discussion Papers.
- Holger Görg & Aoife Hanley & Eric Strobl, 2008. "Productivity effects of international outsourcing: evidence from plant-level data," Canadian Journal of Economics, Canadian Economics Association, vol. 41(2), pages 670-688, May.
- Egger, Peter & Pfaffermayr, Michael & Wolfmayr-Schnitzer, Yvonne, 2001. "The international fragmentation of Austrian manufacturing: The effects of outsourcing on productivity and wages," The North American Journal of Economics and Finance, Elsevier, vol. 12(3), pages 257-272, November.
- Gorg, Holger & Hanley, Aoife, 2005. "International outsourcing and productivity: evidence from the Irish electronics industry," The North American Journal of Economics and Finance, Elsevier, vol. 16(2), pages 255-269, August.
- 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.
- Sanghoon Ahn & Kyoji Fukao & Keiko Ito, 2008. "Outsourcing in East Asia and its impact on the Japanese and Korean Labour Markets," OECD Trade Policy Papers 65, OECD Publishing.
- Sourafel Girma & Holger Görg, 2004.
"Outsourcing, Foreign Ownership, and Productivity: Evidence from UK Establishment-level Data,"
Review of International Economics,
Wiley Blackwell, vol. 12(5), pages 817-832, November.
- Sourafel Girma & Holger Görg, 2003. "Outsourcing, Foreign Ownership and Productivity: Evidence from UK Establishment Level Data," Discussion Papers of DIW Berlin 361, DIW Berlin, German Institute for Economic Research.
- Ten Raa, T. & Wolff, E.N., 2000.
"Outsourcing of Services and the Productivity Recovery in U.S. Manufacturing in the 1980s and 1990s,"
2000-32, Tilburg University, Center for Economic Research.
- Thijs Raa & Edward Wolff, 2001. "Outsourcing of Services and the Productivity Recovery in U.S. Manufacturing in the 1980s and 1990s," Journal of Productivity Analysis, Springer, vol. 16(2), pages 149-165, September.
- Ten Raa, T. & Wolff, E.N., 2001. "Outsourcing of services and the productivity recovery in U.S. manufacturing in the 1980s and 1990s," Other publications TiSEM b3f18298-300d-4bfe-acb6-e, Tilburg University, School of Economics and Management.
- Karsten Bjerring Olsen, 2006. "Productivity Impacts of Offshoring and Outsourcing: A Review," OECD Science, Technology and Industry Working Papers 2006/1, OECD Publishing.
- Falk, Martin & Wolfmayr, Yvonne, 2008. "Services and materials outsourcing to low-wage countries and employment: Empirical evidence from EU countries," Structural Change and Economic Dynamics, Elsevier, vol. 19(1), pages 38-52, March.
- Hartmut Egger & Peter Egger, "undated".
"International Outsourcing and the Productivity of Low-skilled Labour in the EU,"
WIFO Working Papers
- Hartmut Egger & Peter Egger, 2006. "International Outsourcing and the Productivity of Low-Skilled Labor in the EU," Economic Inquiry, Western Economic Association International, vol. 44(1), pages 98-108, January.
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