OECD Science, Technology and Industry Working Papers

ISSN :
1815-1965 (en ligne)
DOI :
10.1787/18151965
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The OECD Directorate for Science, Technology and Industry (STI) leads OECD research on the contribution of science, technology and industry to well-being and economic growth. STI Working Papers cover a broad range of topics including definition and measurement of science and technology indicators, global value chains, and research on policies to promote innovation. These technical or analytical working papers are prepared by staff or outside consultants to share early insights and elicit feedback.
 

Productivity Impacts of Offshoring and Outsourcing

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Auteur(s):
Karsten Bjerring Olsen
Date de publication
06 mars 2006
Bibliographic information
No:
2006/01
Pages
36
DOI
10.1787/685237388034

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Despite the attention that offshore outsourcing currently demands in the public media, there is little empirical evidence on its economic impact. As a consequence of rising fears of job losses associated with the phenomenon, most existing research on the subject is primarily concerned with addressing related labour market issues. The impacts on productivity, however, have received only little attention. This paper surveys the empirical literature on offshore outsourcing and its productivity effects. Due to the small number of existing studies, the survey also includes research that may serve as indirect evidence of the phenomenon’s link to productivity, such as its effect on skill upgrading. The most apparent conclusion drawn from the review is that there appears to be no clear patterns as to how offshore outsourcing affects productivity, and that much depends on both sector and firm-specific characteristics. There are some indications, however, that positive productivity effects from foreign material sourcing depends on the degree to which firms are already globally engaged, but also that such engagements generally could be close to their optimum level in developed economies. There is little existing research on offshoring of services, but it appears that its productivity enhancing effects generally are small in manufacturing plants while being of a somewhat greater magnitude for firms in the services sector.