Catherine Morrison Paul is also a member of the Giannini Foundation of the University of California. We wish to acknowledge helpful comments and suggestions by Daniel Millimet, Amil Petrin, Jagadeesh Sivadasan, and participants at the International Industrial Organization Conference, the Midwest International Trade Conference, and the Southern Economic Association Conference. We would also like to thank Omer Gebizlioglu, Ilhami Mintemur, and Emine Kocberber at the State Institute of Statistics in Turkey for allowing us access to the data for this study, and Erol Taymaz for helpful discussions about the data. Email: cjmpaul@primal.ucdavis.edu
Outsourcing, productivity, and input composition at the plant level
Article first published online: 3 APR 2009
DOI: 10.1111/j.1540-5982.2009.01514.x
© Canadian Economics Association
Issue

Canadian Journal of Economics/Revue canadienne d'économique
Volume 42, Issue 2, pages 422–439, May / mai 2009
Additional Information
How to Cite
Paul, C. J. M. and Yasar, M. (2009), Outsourcing, productivity, and input composition at the plant level. Canadian Journal of Economics/Revue canadienne d'économique, 42: 422–439. doi: 10.1111/j.1540-5982.2009.01514.x
Publication History
- Issue published online: 3 APR 2009
- Article first published online: 3 APR 2009
- Abstract
- Article
- References
- Cited By
Keywords:
- D24;
- F14;
- L60
Abstract We evaluate the productivity and input composition effects of outsourcing (or subcontracting) for Turkish textile and apparel manufacturing plants. We analyze differences in performance indicators for plants that subcontract inputs or outputs, and find that plants that outsource internationally perform better than those that outsource domestically. We evaluate labour productivity gaps and find that more productive plants both initiate outsourcing and subsequently increase their productivity. We then estimate a flexible production function, controlling for simultaneity and selection bias, and find that higher productivity from input subcontracting involves greater skilled labour intensity but the reverse is true for output subcontracting.
Le texte évalue les effets de la sous-traitance sur la productivité et la composition des intrants des établissements manufacturiers de textile et vêtements en Turquie. On analyse les différences dans les indicateurs de performance des établissements qui sous contractent intrants et extrants, et on découvre que la performance des établissements qui sous contractent internationalement est supérieure à celle de ceux qui sous contractent au niveau domestique. On évalue les différentiels de productivité du travail, et on découvre que les établissements les plus productifs à la fois prennent l'initiative d'aller en sous-traitance, et accroissent subséquemment leur productivité. On calibre une fonction de production flexible, normalisant pour les biais de simultanéité et de sélection, et on découvre que les établissements à plus forte productivité, parce qu'ils sous contractent des intrants, ont une plus grande intensité de travail qualifié, et que c'est le contraire pour les établissements qui sous contractent des extrants.

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