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Productivity Effects of International Outsourcing: Evidence from Plant Level Data

Holger Görg (), Aoife Hanley and Eric Strobl ()

No 6361, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We investigate the impact of international outsourcing on productivity using plant level data for Irish manufacturing. Specifically, we distinguish the effect of outsourcing of materials from services inputs. Moreover, we examine whether the impact on productivity is different for plants being more embedded in international markets through exporting or being part of a multinational. Our results show robust evidence for positive effects from outsourcing of services inputs for exporters, either domestic- or foreign-owned. By contrast, we find no statistically significant evidence of an impact of international outsourcing of services on productivity for firms not operating on the export market.

Keywords: exporting; International outsourcing; multinational enterprises; productivity (search for similar items in EconPapers)
JEL-codes: F14 F23 L23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-eff and nep-int
Date: 2007-06
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