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- Title
The heterogeneous effect of international outsourcing on firm productivity.
- Authors
McCann, Fergal
- Abstract
This paper analyses how international outsourcing affects plant total factor productivity (TFP) using a census of Irish manufacturing firms. The results point to a striking pattern: the status of being or becoming an outsourcer matters strongly for firms that are indigenous and not exporting, while for exporters and foreign affiliates, TFP increases are lower, insignificant and sometimes negative. On the other hand, higher intensity of outsourcing matters for both exporters and foreign affiliates. The message is clear: international outsourcing's initial learning effect on TFP is most pronounced when it serves as a first exposure to international markets, while the 'scale effect' of outsourcing en masse only occurs to larger, already internationalised firms.
- Subjects
IRELAND; OFFSHORE assembly industry; INDUSTRIAL productivity; INTERNATIONAL markets; EXPORT trading companies; INTERNATIONAL business enterprises
- Publication
Review of World Economics, 2011, Vol 147, Issue 1, p85
- ISSN
1610-2878
- Publication type
Article
- DOI
10.1007/s10290-010-0080-8