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DETERMINANTS OF OUTSOURCING PRODUCTION: A Dynamic Panel Data Approach for Manufacturing Industries

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  • Carmen Díaz Mora

Abstract

The present paper investigates the determinants of outsourcing production using a panel of 93 Spanish manufacturing industries for the period 1993-2002. Outsourcing is measured as production tasks which are contracting out to independent suppliers, a more direct and suitable indicator. After controlling for unobserved heterogeneity and simultaneity, our results show a high persistence of the outsourcing intensity. Moreover, outsourcing of production is positively related to unit labour costs, skills requirements and national ownership.

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  • Carmen Díaz Mora, "undated". "DETERMINANTS OF OUTSOURCING PRODUCTION: A Dynamic Panel Data Approach for Manufacturing Industries," Working Papers on International Economics and Finance 05-07, FEDEA.
    • Handle: RePEc:fda:fdadef:05-07
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    References listed on IDEAS

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    2. Tomiura, Eiichi, 2005. "Foreign outsourcing and firm-level characteristics: Evidence from Japanese manufacturers," Journal of the Japanese and International Economies, Elsevier, vol. 19(2), pages 255-271, June.
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    Cited by:

    1. Ann Bartel & Saul Lach & Nachum Sicherman, 2005. "Outsourcing and Technological Change," NBER Working Papers 11158, National Bureau of Economic Research, Inc.
    2. Christian Keuschnigg, 2008. "Corporate Taxation and the Welfare State," Working Papers 0813, Oxford University Centre for Business Taxation.
    3. Appiah-Adu, Kwaku & Okpattah, Bernard K. & Djokoto, Justice G., 2016. "Technology transfer, outsourcing, capability and performance: A comparison of foreign and local firms in Ghana," Technology in Society, Elsevier, vol. 47(C), pages 31-39.
    4. Bartel, Ann P. & Lach, Saul & Sicherman, Nachum, 2008. "Outsourcing and Technological Innovations: A Firm-Level Analysis," IZA Discussion Papers 3334, Institute of Labor Economics (IZA).
    5. Roberto Antonietti & Giulio Cainelli, 2008. "Production Outsourcing, Organizational Governance and Firm’s Technological Performance: Evidence from Italy," The IUP Journal of Managerial Economics, IUP Publications, vol. 0(1), pages 51-69, February.

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    More about this item

    JEL classification:

    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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