Working Paper: CEPR ID: DP6361
Authors: Holger Grg; Aoife Hanley; Eric Strobl
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
JEL Codes: F14; F23; L23
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| International outsourcing of services inputs (F29) | Plant-level productivity (O47) |
| International outsourcing of services inputs for exporters (F10) | Plant-level productivity (O47) |
| International outsourcing of services inputs for non-exporters (F29) | Plant-level productivity (O47) |
| International outsourcing of materials (L24) | Plant-level productivity (O47) |