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Outsourcing and productivity: Evidence from Korean data

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  • Lin, Songhua
  • Ma, Alyson C.

Abstract

This paper aims to provide the first investigation of the productivity effect of outsourcing by using the Korean industry data at the three-digit ISIC level. We find that there are positive productivity gains from material outsourcing. The impact of material outsourcing increases when we account for the share of imports from China. This is due to the growth of Chinese exports to Korea over the recent years. Moreover, the results also suggest that during our sample period Korea's experiment with service outsourcing did not lead to an increase in its productivity.

Suggested Citation

  • Lin, Songhua & Ma, Alyson C., 2012. "Outsourcing and productivity: Evidence from Korean data," Journal of Asian Economics, Elsevier, vol. 23(1), pages 39-49.
    • Handle: RePEc:eee:asieco:v:23:y:2012:i:1:p:39-49
    DOI: 10.1016/j.asieco.2011.11.005
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    Cited by:

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    2. Zhou Wei & Adel Ben Youssef, 2012. "The productivity impact of international technology transfer in China: Empirical investigation on Chinese regions," Economics Bulletin, AccessEcon, vol. 32(2), pages 1590-1603.
    3. Peng, Fei & Peng, Langchuan & Wang, Zheng, 2021. "How do VAT reforms in the service sectors impact TFP in the manufacturing sector: Firm-level evidence from China," Economic Modelling, Elsevier, vol. 99(C).

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    More about this item

    Keywords

    Productivity; Outsourcing; Korea; International trade;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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