Arbeitspapier

Does outsourcing increase profitability?

We investigate the relationship between outsourcing and profitability paying particular attention to the endogeneity of outsourcing. The empirical analysis uses unique plant level data for the electronics sector in Ireland. A particular feature of the data is that it records detailed information for 12 electronics sub-sectors covering both manufacturing and services activities. We distinguish outsourcing of materials from outsourcing of services inputs. We find that plants that are substantially larger than the mean employment size benefit from outsourcing materials and services inputs, while this does not appear to be the case for small plants. Results for outsourcing of services are not as clear-cut, however.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 1372

Classification
Wirtschaft
Organization of Production
Microelectronics; Computers; Communications Equipment
Subject
Subcontracting
Profitability
Electronics
Outsourcing
Elektronikindustrie
Outsourcing
Lieferant
Rentabilität
Betriebsgröße
Schätzung
Irland

Event
Geistige Schöpfung
(who)
Görg, Holger
Hanley, Aoife
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2004

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Görg, Holger
  • Hanley, Aoife
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2004

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