The causal effect of institutional quality on outsourcing

Hein Roelfsema (h.j.roelfsema@uu.nl) and Zhang Yi

No 09-03, Working Papers from Utrecht School of Economics

Abstract: This paper empirically investigates the relationship between institutional quality and outsourcing to developing economies. In contrast to cross-sectional studies on institutions, this paper uses panel data for 76 countries over 25 years (1980-2004). Employing panel data helps to show the causal relationship by controlling for the fixed effects and dynamic factors. Using within and IV estimations, we find that there is a positive effect of institutional quality on outsourcing in the lower-middle income countries. The quality of institutions is not an important determinant of outsourcing to either low or high income countries.

Keywords: Institutional quality; Outsourcing; Developing countries (search for similar items in EconPapers)
Date: 2009-02
New Economics Papers: this item is included in nep-lab and nep-law
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Citations: View citations in EconPapers (4)

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Journal Article: The causal effect of institutional quality on outsourcing (2012)
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