Long term impacts of international outsourcing of manufacturing on sustainability

International outsourcing seems to be a cost efficient way of production. However, there are serious concerns about its long term impacts on the environmental, social and economic sustainability. This paper aims to quantify these impacts by using input output analysis, linear programming and system dynamics in a case study including European electrical industry (outsourcer), Chinese electrical industry (outsourcee) and their main suppliers. Results depict the differences related to the total CO2 emissions, the number of employees and the gross value added of these two regions between a 10% international outsourcing scenario and the baseline scenario due to their differences in production technologies.