The extent and impact of outsourcing: evidence from Germany

Craig Aubochon, Subhayu Bandyopadhyay, Sumon Bhaumik

Research output: Contribution to journalArticlepeer-review


The authors use data from several sources, including plant-level data from the manufacturing sector in Germany, to expand the literature on outsourcing. They find that, in Germany, the extent of outsourcing among manufacturing industries is higher than among service industries and that the outsourcing intensity of these industries did not change much between 1995 and 2005. They also find a statistically significantly positive impact of industry-level outsourcing intensity on German plant-level labor productivity for both 2000 and 2005. The estimated economic impact of outsourcing on plant-level productivity is also fairly significant.
Original languageEnglish
Pages (from-to)287-304
Number of pages18
JournalFederal Reserve Bank of St. Louis Review
Issue number4
Publication statusPublished - Jul 2012

Bibliographical note

© 2012, The Federal Reserve Bank of St. Louis. The views expressed in this article are those of the author(s) and do not necessarily reflect the views of the Federal Reserve System, the Board of Governors, or the regional Federal Reserve Banks. Articles may be reprinted, reproduced, published, distributed, displayed, and transmitted in their entirety if copyright notice, author name(s), and full citation are included. Abstracts, synopses, and other derivative works may be made only with prior written permission of the Federal Reserve Bank of St. Louis.


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