Journal Article

Outsourcing Foreign Services and the Internet: Evidence from Firm Level Data


  • Görg
  • H.
  • Hanley
  • A.
  • Ott
  • I.

We analyse the link between internet use and foreign sourcing of services and materials inputs. In our empirical analysis using firm level data for Ireland we find, among firms that a priori all purchase inputs abroad, that those who commenced outsourcing from suppliers over the Internet (‘Adopters’) experience significantly higher growth rates of services offshoring. This result shows in a variety of econometric methods (OLS, Propensity Scoring (Kernel, Nearest Neighbour and Caliper Matching)). Adopting the Internet for outsourcing induced an increase in the share of foreign services by 3.2 – 4.0%.


JEL Classification
F14, L24