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Outsourcing Foreign Services and the Internet: Evidence from Firm Level Data

Holger Görg, Aoife Hanley and Ingrid Ott
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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

Abstract: 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)
Date: 2015
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