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Determinants of Outsourcing in the Automobile Sector in India

Author

Listed:
  • Santosh K. Sahu

    (Assistant Professor, Madras School of Economics)

  • Ishan Roy

    (Madras School of Economics, Chennai)

Abstract

This study involves the determination of outsourcing based on the market structure technology imports and technical efficiency for the automotive sector in India. An important characteristic of this study is that it divides the automotive sector into two sub-sectors (1) the automobile ancillaries sectors, which provides the parts and are the upstream firms and (2) the automobile assemblers who assemble the automobile and sell them to the consumers. Our analysis confirms the fact that when the data is segregated in the two sectors, factors like technical efficiency of firms have opposite effect on the outsourcing tendencies.

Suggested Citation

  • Santosh K. Sahu & Ishan Roy, 2016. "Determinants of Outsourcing in the Automobile Sector in India," Working Papers 2016-151, Madras School of Economics,Chennai,India.
    • Handle: RePEc:mad:wpaper:2016-151
    as

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    References listed on IDEAS

    as
    1. Mol, Michael J. & van Tulder, Rob J.M. & Beije, Paul R., 2005. "Antecedents and performance consequences of international outsourcing," International Business Review, Elsevier, vol. 14(5), pages 599-617, October.
    2. Beck, Nathaniel & Katz, Jonathan N., 1995. "What To Do (and Not to Do) with Time-Series Cross-Section Data," American Political Science Review, Cambridge University Press, vol. 89(3), pages 634-647, September.
    3. Abraham, Katharine G & Taylor, Susan K, 1996. "Firms' Use of Outside Contractors: Theory and Evidence," Journal of Labor Economics, University of Chicago Press, vol. 14(3), pages 394-424, July.
    4. Shy, Oz & Stenbacka, Rune, 2003. "Strategic outsourcing," Journal of Economic Behavior & Organization, Elsevier, vol. 50(2), pages 203-224, February.
    5. Gene M. Grossman & Elhanan Helpman, 2002. "Integration versus Outsourcing in Industry Equilibrium," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(1), pages 85-120.
    6. Jose Campa & Linda S. Goldberg, 1997. "The Evolving External Orientation of Manufacturing Industries: Evidence from Four Countries," NBER Working Papers 5919, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Outsourcing; technology import; technical efficiency; automotive sector; India;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

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