International Outsourcing and Productivity in Italian Manufacturing Sectors

16 Pages Posted: 23 Jun 2008

See all articles by Alessia Lo Turco

Alessia Lo Turco

Università Politecnica delle Marche - Department of Economics and Social Sciences

Multiple version iconThere are 2 versions of this paper

Date Written: October 25, 2006

Abstract

This paper estimates the effect of international outsourcing of materials and services on productivity in Italian manufacturing sectors during the period 1985-1997. Three different measures of outsourcing are used. Firstly, a "narrow" measure of outsourcing is calculated as the intensity of intermediate inputs that each sector imports from the same sector abroad. Secondly, a "broad" measure of outsourcing of materials is calculated as the intensity of materials imported from non-energy manufacturing sectors abroad. Finally, outsourcing of services is measured as the total imported business and financial services. Outsourcing is modelled as to affect TFP and the results suggest a general positive effect of outsourcing of materials. The effect of outsourcing of services seems to be ambiguous: it is positive for the traditional sectors and negative for the advanced sectors.

Keywords: international outsourcing, productivity, Italy

JEL Classification: F15, L60

Suggested Citation

Lo Turco, Alessia, International Outsourcing and Productivity in Italian Manufacturing Sectors (October 25, 2006). Available at SSRN: https://ssrn.com/abstract=1149462 or http://dx.doi.org/10.2139/ssrn.1149462

Alessia Lo Turco (Contact Author)

Università Politecnica delle Marche - Department of Economics and Social Sciences ( email )

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