Economics, Econometrics and Finance
4 years ago

Foreign-owned firms in UK outsource more, boosting productivity significantly.

RePEc: Research Papers in Economics
Outsourcing, Foreign Ownership and Productivity: Evidence from UK Establishment Level Data
Sourafel Girma, Holger Görg

Paper Summary

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The study looked at how UK companies decide to outsource work and how it affects their productivity. They found that companies with higher wages are more likely to outsource to save money. Foreign-owned companies tend to outsource more than UK-owned ones. When companies outsource more, their productivity goes up, especially for foreign-owned companies.