Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/121199
Authors: 
Falk, Martin
Wolfmayr, Yvonne
Year of Publication: 
2008
Series/Report no.: 
FIW Research Reports 017
Abstract: 
This study investigates the impact of international outsourcing to low? and high income countries on total factor productivity growth based on manufacturing industry data for 14 OECD countries from 1995 ? 2000. We find that the broad measure of international outsourcing of material inputs to low income countries is significantly negatively related to productivity growth. Furthermore, while the narrow measure of international outsourcing of materials is not significant, purchased services from abroad have a significant and positive effect on TFP growth. In particular, international services outsourcing accounted for 20 percent of the growth of total factor productivity in the manufacturing sector in the selected OECD countries.
Subjects: 
Foreign Direct Investment
international outsourcing
total factor productivity growth
JEL: 
F14
F23
L23
Document Type: 
Research Report

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