Outsourcing and productivity: Evidence from Korean data

Songhua Lin and Alyson C. Ma

Journal of Asian Economics, 2012, vol. 23, issue 1, pages 39-49

Abstract: This paper aims to provide the first investigation of the productivity effect of outsourcing by using the Korean industry data at the three-digit ISIC level. We find that there are positive productivity gains from material outsourcing. The impact of material outsourcing increases when we account for the share of imports from China. This is due to the growth of Chinese exports to Korea over the recent years. Moreover, the results also suggest that during our sample period Korea's experiment with service outsourcing did not lead to an increase in its productivity.

Keywords: Productivity; Outsourcing; Korea; International trade (search for similar items in EconPapers)
JEL-codes: F10 F14 D24 (search for similar items in EconPapers)
Date: 2012
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Persistent link: http://EconPapers.repec.org/RePEc:eee:asieco:v:23:y:2012:i:1:p:39-49

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