International Outsourcing and Productivity Growth

Falk, Martin

doi:10.5202/rei.v3i1.54

Cited by 6 publications

(5 citation statements)

References 25 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In addition, as suppliers gain knowledge of the product being manufactured, they may use this knowledge to begin marketing the product on their own. Falk (2012) introduces different results as follows: outsourcing material leaves the positive effect while outsourcing service have the negative effect on firm’s productivity. Moreover, Daveri and Jona-Lasinio (2008), using data for 21 manufacturing industry sectors in Italy between 1995 and 2003, indicates that the imported intermediate materials have a significantly positive impact on overall productivity growth whereas the purchased services have a negative impact on productivity.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The measurement for outsourcing is based on collected information at the industry level and from input-output tables, rather than firm-level data (López, 2014). Due to data limitation, the existing literature have focused on outsourcing at the industry level and have found either positive impacts (Amiti & Wei, 2009; Lin & Ma, 2012, Austin-Egole & Iheriohanma, 2021) or negative effects (Winkler, 2010; Falk, 2012; Windrum, Reinstaller, & Bull, 2009). In explaining for why firms do outsourcing, the previous studies focused on the internal factors that might incur outsourcing decisions, which were analyzed differently through the agency cost theory, the resource dependency theory, and the transaction cost theory (Michael & Michael, 2011).…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Total factor productivity and outsourcing: the case of Vietnamese small and medium sized enterprises

Ngoc,

Tien,

Long

et al. 2023

FREP

View full text Add to dashboard Cite

PurposeThe paper aims to investigate the difference in total factor productivity (TFP) among those firms with and without outsourcing in a developing country like Vietnam. Also, it explores the effect of outsourcing activities on total factor productivity with a specified concentration on the Vietnamese small and medium-sized enterprises (SMEs).Design/methodology/approachThe panel data set of SMEs used in this study was originated from biannual surveys conducted under the collaboration between educational organizations and government agencies: Stockholm School of Economics (SSE), Department of Economics – the University of Copenhagen, the Institution of Labor Studies and Social Affairs (ILSSA) in the Ministry of Labor, Invalids and Social Affairs (MOLISA). In this study, the model is developed based on the production function in accordance with the model of Girma and Görg (2004). The firms’ TFP is the difference between the actual and the predicted output as with the approach by Levinsohn and Petrin (2003).FindingsThis study finds out that firms with outsourcing have higher total factor productivity than those without outsourcing activities. In addition, the more firms spend on outsourcing, the higher total factor productivity they can gain. Outsourcing to SMEs in a developing country can significantly increase its TFP by means of either maintaining core competencies or searching external resources in conducting some internal activities.Originality/valueAlthough outsourcing has been widely applied by large firms, the research studying its impact on productivity at firm level is limited. Especially, this study can shed light on the impact for the case of SMEs in a developing economy.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Total factor productivity and outsourcing: the case of Vietnamese small and medium sized enterprises

Ngoc,

Tien,

Long

et al. 2023

FREP

View full text Add to dashboard Cite

show abstract

“…Another centrality coefficient used to evaluate the degree of outsourcing of industries is international outsourcing. There are two kinds of definition of international outsourcing, which are the so-called broad and narrow measure (Falk 2012). The broad outsourcing is given by the following:…”

Section: Strength Centrality-based Measuresmentioning

confidence: 99%

Topological Properties of China Input-Output Networks

Zhuang¹,

Hou²

2018

aeb

View full text Add to dashboard Cite

The aim of this paper is to contribute to a better understanding of developments and changes of China economy from the perspective of input-output networks between 1990 and 2013. Through choosing a network-based approach and combining this with input-output data we are able to analyze the changes and evolutions of centralities, which measured by strength centrality and clustering coefficient, and some extend measures based on centrality including import penetration, international outsourcing and distance to final demand. Our findings show that the basic impression about China input-output networks is that flows are concentrated on some minority points, and also concentrated on the diagonal line obviously, and the self-inputs by industries are normal and significant. Moreover, during recent years the trend of lower and wider peak of the density strength centrality curves illustrates the more balance of China economy than at the beginning of this century, and construction has always been the pillar industry. The changes of distribution of import penetration have been flatter and lower since 1990 and then narrower and higher about after 2001. This trend means that after 2001 most of China industries decrease the dependencies of import from outside. Some trade pattern in measures of distance to final demand and clustering coefficient are exhibited in this paper.

show abstract

“…Intra-product specialisation is also called vertical specialisation (VS) (Hummels, Ishii & Yi, 2001; Hummels, Rapoport & Yi, 1998; Kohler, 2003), global outsourcing, slicing up of the value chain or modularity (Brusoni & Prencipe, 2011; Cheng, 2011; Lau, Yam & Tang, 2011). Falk (2012) investigated the impact of international outsourcing to low and high income countries on TFP growth based on manufacturing industry data of fourteen Organisation for Economic Co-operation and Development (OECD) countries from 1995 to 2000. Furthermore, Falk made a distinction between the outsourcing of materials from developed countries and that from the emerging nations, and also made a distinction between outsourcing of materials and outsourcing of services.…”

Section: Literature Reviewmentioning

confidence: 99%

Intra-product Specialisation and the Innovation Ability of the High-technology Industry in China

Cao

Zhang

et al. 2017

Science, Technology and Society

View full text Add to dashboard Cite

The purpose of this paper is to analyse the influence of intra-product specialisation on the innovation ability of the high-technology industry in China. To achieve this research goal, we use the generalised method of moments (GMM) with a dynamic panel data model in our empirical research. Total factor productivity (TFP) and its decomposition variables are used to measure the innovation ability. The Malmquist index is employed to calculate TFP and its decomposition variables, namely, technology progress, technical efficiency and scale efficiency. Previous studies show that intra-product specialisation can raise TFP, but our empirical results reveal that the impact of the intra-product specialisation on the TFP is uncertain: it decreases TFP in the initial period but increases it in the lag period. Results also indicate that an increase in the proportion of state-owned property rights exerts a positive influence on TFP and the change in pure technical efficiency. Technical efficiency is greatly influenced by intraproduct specialisation, whereas intra-product specialisation exerts a slight influence on technological progress. The capital investment in research and development (R&D) has a positive effect on TFP, and the contribution rate of R&D labour input to TFP is relatively low. The main conclusion is that China need to improve the degree of intra-product specialisation, accelerate the evolution of industry technical standards and reduce the coordination cost of intra-product specialisation to enhance the innovation ability of the high-technology industry.

show abstract

International Outsourcing and Productivity Growth

Cited by 6 publications

References 25 publications

Total factor productivity and outsourcing: the case of Vietnamese small and medium sized enterprises

Total factor productivity and outsourcing: the case of Vietnamese small and medium sized enterprises

Topological Properties of China Input-Output Networks

Intra-product Specialisation and the Innovation Ability of the High-technology Industry in China

Contact Info

Product

Resources

About