Article ID Journal Published Year Pages File Type
5066779 European Economic Review 2015 17 Pages PDF
Abstract

In this paper we empirically explore outsourcing decisions of peripheral services using information from a data set of 926 Spanish manufacturing plants. We find that increases in outsourcing of peripheral services are positively correlated with increases in the plant׳s market share as well as increases in product market competition and product prices. These findings are robust to controlling for whether plants belong to single-plant or multi-plant firms. These patterns are consistent with a strategic shift in the allocation of attention to core manufacturing activities, and are at odds with traditional TCE and PRT theories of vertical integration.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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