Outsourcing and Productivity During Economic Crisis: Evidence from Indian Manufacturing Firms
Saibal Kar () and
Meghna Dutta
Arthaniti: Journal of Economic Theory and Practice, 2018, vol. 17, issue 2, 168-182
Abstract:
Abstract Outsourcing as a form of production reorganisation has important implications for factor productivity. Empirical verification of this relationship for India, however, is unavailable in the recent times. To fill this gap, we measure the relationship between outsourcing and multifactor productivity for Indian firms between 2010 and 2014. We use fixed-effect panel data regression and GMM estimates to establish that outsourcing raises productivity significantly at the source. The outsourcing–productivity link has important policy implications for developing countries, such as India. Relative inflexibility of labour market institutions and slow-moving legal procedures may otherwise restrict the restructuring of firms under duress. Outsourcing-related productivity improvements might have helped to overcome such disadvantages even during the global crisis of 2008–2009. JEL: D24, L6
Keywords: Productivity; outsourcing; organised sector; manufacturing industry; India (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)
Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/0976747918792638 (text/html)
Related works:
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:sae:artjou:v:17:y:2018:i:2:p:168-182
DOI: 10.1177/0976747918792638
Access Statistics for this article
More articles in Arthaniti: Journal of Economic Theory and Practice
Bibliographic data for series maintained by SAGE Publications ().