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Title:Outsourcing, foreign ownership and productivity : evidence from UK establishment level data PDF Logo
Authors:Girma, Sourafel
Görg, Holger
Issue Date:2003
Citation:[Series:] Diskussionspapiere [Editor:] Deutsches Institut für Wirtschaftsforschung, Berlin 61
Series/Report no.:DIW-Diskussionspapiere 361
Abstract:This paper presents an empirical analysis of ?outsourcing? using establishment level data for UK manufacturing industries. We analyse an establishment?s decision to outsource and the subsequent effects of outsourcing on the establishment?s productivity. We compare outsourcing in domestic with foreign-owned establishments. Our empirical results suggest that high wages are positively related to outsourcing, suggesting that the cost saving motive is important. We also find that foreign-owned firms have higher levels of outsourcing than domestic establishments. In the productivity analysis we find that an establishment?s outsourcing intensity is positively related to its labour productivity and total factor productivity growth and that this effect is more pronounced for foreign establishments.
Subjects:outsourcing , foreign direct investment , productivity
JEL:L23
F23
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des IfW
DIW-Diskussionspapiere
Publikationen von Forscherinnen und Forschern des DIW

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