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AcknowledgementsThe authors are grateful to the ONS Business Data Linking Project for providing access to the ARD database. Thanks are also due to Eric Strobl and participants at the GEP conference on "Adjusting to Globalisation", in particular Steve Redding, for helpful comments and to Richard Upward for providing data from the New Earnings Survey. All remaining errors or omissions are, of course, the authors'. Financial support from the Leverhulme Trust (Grant No. F114/BF) is gratefully acknowledged.
Outsourcing, foreign ownership and productivity:Evidence from UK establishment level data by Sourafel Girma and Holger Görg Abstract This paper presents an empirical analysis of "outsourcing" using establishment level data for UK manufacturing industries. We analyse an establishment's decision to outsource and the subsequent effects of outsourcing on the establishment's productivity. We compare outsourcing in domestic with foreign-owned establishments. Our empirical results suggest that high wages are positively related to outsourcing, suggesting that the cost saving motive is important. We also find that foreign-owned firms have higher levels of outsourcing than domestic establishments. In the productivity analysis we find that an establishment's outsourcing intensity is positively related to its labour productivity and total factor productivity growth and that this effect is more pronounced for foreign establishments.
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