Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/3410
Authors: 
Görg, Holger
Hanley, Aoife
Year of Publication: 
2004
Series/Report no.: 
IZA Discussion paper series 1372
Abstract: 
We investigate the relationship between outsourcing and profitability paying particular attention to the endogeneity of outsourcing. The empirical analysis uses unique plant level data for the electronics sector in Ireland. A particular feature of the data is that it records detailed information for 12 electronics sub-sectors covering both manufacturing and services activities. We distinguish outsourcing of materials from outsourcing of services inputs. We find that plants that are substantially larger than the mean employment size benefit from outsourcing materials and services inputs, while this does not appear to be the case for small plants. Results for outsourcing of services are not as clear-cut, however.
Subjects: 
Subcontracting
Profitability
Electronics
Outsourcing
JEL: 
L23
L63
Document Type: 
Working Paper

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