International outsourcing and productivity: Evidence from the Irish electronics industry

Hanley, Aoife; Görg, Holger

doi:https://dx.doi.org/10.1016/j.najef.2004.11.006

Journal Article

International outsourcing and productivity: Evidence from the Irish electronics industry

North American Journal of Economics and Finance, 16(2): 255-269

link to journal

Authors

Görg
H.
Hanley
A.

Publication Date: 01/2005

This paper examines the effect of international outsourcing of intermediate inputs on productivity at the level of the plant, with a focus on the electronics industry in the Republic of Ireland. The effect of international outsourcing on plant-level productivity depends critically on the nature of the outsourced inputs (services or tangibles) and on the plant's export intensity. Outsourcing of materials provides significant productivity gains, but this effect holds only for plants with low export intensities.