Seminario 15/07: A. Martín (UNED) –Assessing the impact of domestic outsourcing and offshoring on productivity at the firm level

Información

Abstract

The purpose of this paper is to investigate the effects of domestic and foreign sourcing on firm-level productivity. We develop a simple framework which permits the introduction of both domestic outsourcing and offshoring in a conventional production function. We find that the decision to outsource has a positive impact on the level of productivity as it permits the relocation of parts of the production process to external suppliers. Furthermore, there is a positive impact on output resulting from domestic outsourcing and offshoring like any other input.