The Heterogeneous Effect of International Outsourcing on Firm Productivity

Fergal McCann ()

Working Papers from CEPII research center

Abstract: This paper analyses how international outsourcing affects plant productivity. The results point to a striking pattern: the status of being an outsourcer matters strongly for firms that are indigenous and not exporting, while for exporters and foreign affiliates, tfp increases are lower, insignificant and sometimes negative. On the other hand, higher intensity of outsourcing matters for both exporters and foreign affiliates. Similarly, in dynamic analysis, indigenous non-exporters are found to increase tfp for two periods after entering into international outsourcing, while indigenous exporters experience one more weakly significant period of growth. The message is clear: international outsourcing’s effect on tfp is most pronounced when it serves as a first exposure to international markets.

Keywords: INTERNATIONAL OUTSOURCING; HETEROGENEOUS FIRMS; PRODUCTIVITY; FIRM STRUCTURE (search for similar items in EconPapers)
JEL-codes: F23 L23 (search for similar items in EconPapers)
Date: 2010-03
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eff and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.cepii.fr/PDF_PUB/wp/2010/wp2010-06.pdf (application/pdf)

Related works:
Journal Article: The heterogeneous effect of international outsourcing on firm productivity (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cii:cepidt:2010-06

Access Statistics for this paper

More papers in Working Papers from CEPII research center Contact information at EDIRC.
Bibliographic data for series maintained by ().