Job losses, outsourcing and relocation: Empirical evidence using microdata

Identifier:  PC:2364

Handle: https://hdl.handle.net/20.500.11797/PC2364

Authors:  Suriñach Caralt, Jordi; Ramos Lobo, Raúl; Artís Ortuño, Manuel

Abstract:
Using microdata, we analyse the determinants of firm relocation and conventional outsourcing decisions as a way to reduce employment. The results for a sample of 32 countries show the relevance of factors not considered previously in the literature. Firms that are below average in quality or innovation have a higher propensity to externalise part of their production through outsourcing, while lower relative profitability and longer time to market for new products each imply a higher probability of relocation.