Outstanding Outsourcers: A Firm- and Plant-Level Analysis of Production Sharing

38 Pages Posted: 2 May 2006

See all articles by Christopher Johann Kurz

Christopher Johann Kurz

Board of Governors of the Federal Reserve System

Multiple version iconThere are 2 versions of this paper

Date Written: March 2006

Abstract

This paper examines the differences in characteristics between outsourcers and non-outsourcers with a particular focus on productivity. The measure of outsourcing comes from a question in the 1987 and 1992 Census of Manufactures regarding plant-level purchases of foreign intermediate materials. There are two key findings. First, outsourcers are outstanding. That is, all else equal, outsourcers tend to have premia for plant and firm characteristics, such as being larger, more capital intensive, and more productive. One exception to this outsourcing premia is that wages tend to be the same for both outsourcers and non-outsourcers. Second, outsourcing firms, but not plants, have significantly higher productivity growth.

Keywords: Outsourcing, Productivity, Exporter, Plant-Level, and Multinational

JEL Classification: F10, F14, L24

Suggested Citation

Kurz, Christopher Johann, Outstanding Outsourcers: A Firm- and Plant-Level Analysis of Production Sharing (March 2006). FEDs Working Paper No. 2006-04, Available at SSRN: https://ssrn.com/abstract=899154 or http://dx.doi.org/10.2139/ssrn.899154

Christopher Johann Kurz (Contact Author)

Board of Governors of the Federal Reserve System ( email )

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