Arbeitspapier

Outsourcing and technological change

We present a dynamic model where the probability of outsourcing production is increasing in the firm's expectation of technological change. As the pace of innovations in production technologies increases, the less time the firm has to amortize the sunk costs associated with purchasing and adopting new technologies to produce in-house. Therefore, purchasing from market suppliers, who can afford to use the latest technology, becomes relatively cheaper. The predictions of the model are tested using a panel dataset on Spanish firms for the time period 1990 through 2002. In order to address potential endogeneity problems, we use an exogenous proxy for technological change, namely the number of patents granted by the U.S. patent office classified by technological class. We map the technological classes to the Spanish industrial sectors in which the patents are used and provide causal evidence of the impact of expected technological change on the likelihood and extent of production outsourcing. No prior study has been able to provide such causal evidence. Our results are robust to the inclusion of detailed characteristics of the firms as well as firm fixed effects.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 4678

Klassifikation
Wirtschaft
Labor Force and Employment, Size, and Structure
Organization of Production
Contracting Out; Joint Ventures; Technology Licensing
Technological Change: Choices and Consequences; Diffusion Processes
Thema
Outsourcing
technological change
Outsourcing
Verarbeitendes Gewerbe
Fertigungstechnik
Technischer Fortschritt
Innovation
Lieferanten-Kunden-Beziehung
Spanien

Ereignis
Geistige Schöpfung
(wer)
Bartel, Ann
Lach, Saul
Sicherman, Nachum
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2009

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Bartel, Ann
  • Lach, Saul
  • Sicherman, Nachum
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2009

Ähnliche Objekte (12)