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The determinants and employment effects of international outsourcing: the case of Italy

Giovanni Ferri and Giovanni Costa ()
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Giovanni Costa: ISAE Rome

No 16, SERIES from Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro"

Abstract: Using a new firm-level database, we address micro determinants and employment consequences of international production outsourcing (INPOU). Regarding the former, we confirm that INPOU in Italy mostly counters emerging economies. threats to traditional manufactured goods: INPOU disproportionately targets developing countries and intensifies in sectors with stiffest Chinese competition. Concerning employment consequences, we concur with previous literature that INPOU firms. domestic employment performances are no worse than at matching no-INPOU firms. However, given Italy.s industrial structure (small-sized networked enterprises), INPOU might negatively affect subcontracting firms. Our evidence that employment performances worsen in the productive segments with strongest INPOU supports our conjecture.

Keywords: international outsourcing; multinational firms (search for similar items in EconPapers)
JEL-codes: F23 D21 (search for similar items in EconPapers)
Date: 2007-04, Revised 2007-04
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