Outsourcing Foreign Services and the Internet: Evidence from Firm Level Data
Aoife Hanley and
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Holger Görg: Institut für Weltwirtschaft, Kiel, Germany; Christian Albrechts University, Kiel, Germany
Ingrid Ott: Institut für Weltwirtschaft, Kiel, Germany; Karlsruhe Institute of Technology, Germany
The Economic and Social Review, 2015, vol. 46, issue 3, 367-387
We analyse the link between internet use and foreign sourcing of services and materials inputs. In our empirical analysis using firm level data for Ireland we find, among firms that a priori all purchase inputs abroad, that those who commenced outsourcing from suppliers over the internet (“Adopters”) experience significantly higher growth rates of services offshoring. This result shows in a variety of econometric methods (OLS, Propensity Scoring (Kernel, Nearest Neighbour and Caliper Matching)). Adopting the internet for outsourcing induced an increase in the share of foreign services by 3.2-4.0 per cent.
Keywords: outsourcing; internet; Ireland (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eso:journl:v:46:y:2015:i:3:p:367-387
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