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Article
Outsourcing and Firm Productivity in a Specific Local Production System: Evidence from Reggio Emilia (Italy)
Growth and Change (2014)
  • Davide Antonioli, University of Ferrara
  • Massimiliano Mazzanti, University of Ferrara
  • Sandro Montresor
  • Paolo Pini, University of Ferrara
Abstract

This paper investigates the impact of outsourcing on the labor productivity of firms in a specific local production system.A number of hypotheses about the location-specific effects of outsourcing are put forward and tested on a sample of firms in the province of Reggio Emilia (within the Emilia-Romagna region, in North-East Italy). The relationship between outsourcing and productivity turns out positive only if considering the externalization of high value-added activities. On the contrary, it is negative in the case of low value-added activities. This occurs to a greater extent for firms in mature industrial districts, whose socio-economic conditions however do not arrive to magnify the productivity premium of externalizing high value-added ones. The technological innovativeness of the firms instead helps with that, pointing to a developmental use of outsourcing in the area.

Disciplines
Publication Date
Summer 2014
Citation Information
Davide Antonioli, Massimiliano Mazzanti, Sandro Montresor and Paolo Pini. "Outsourcing and Firm Productivity in a Specific Local Production System: Evidence from Reggio Emilia (Italy)" Growth and Change (2014)
Available at: http://works.bepress.com/sandro_montresor/13/