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What factors determine the outsourcing intensity? A dynamic panel data approach for manufacturing industries
[journal article]
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 external suppliers, a more direct and suitable indicator. After controllin... view more
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 external 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, national ownership and orientation to international markets. We also find evidence for a negative link between the outsourcing intensity and the share of small firms.... view less
Keywords
outsourcing
Classification
Manufacturing
Economic Sectors
Free Keywords
Manufacturing Industries; Explanatory Factors; Unit Labour Costs
Document language
English
Publication Year
2008
Page/Pages
p. 2509-2521
Journal
Applied Economics, 40 (2008) 19
DOI
https://doi.org/10.1080/00036840600970179
Status
Postprint; peer reviewed
Licence
PEER Licence Agreement (applicable only to documents from PEER project)