This study attempts to answer the question of whether European manufacturing firms that undertake offshoring, innovation or both benefit from higher productivity and profitability. From a methodological point of view, the driving forces that push firms to innovate and/or to offshore can be seen as self-selection mechanisms that make the estimation of their economic impact more difficult if the confounding factors affecting these mechanisms also affect the economic performance of the firms. To disentangle the effect of both offshoring and innovation on firms’ performances from the effect of firm characteristics, the propensity score matching methodology in a multi-overlapping treatment setting is used. The study targets European countries using the EU-EFIGE/Bruegel-Unicredit dataset. Decisions to offshore and innovate do not seem to have a significant effect on productivity, whereas the decision to innovate only has a significant effect on firm profitability.

Do Innovation and Offshoring Make a Difference? An Empirical Exploration of the Effects on the Performance of European Firms

CALIA, PINUCCIA PASQUALINA;D'ATTOMA, IDA;PACEI, SILVIA
2016

Abstract

This study attempts to answer the question of whether European manufacturing firms that undertake offshoring, innovation or both benefit from higher productivity and profitability. From a methodological point of view, the driving forces that push firms to innovate and/or to offshore can be seen as self-selection mechanisms that make the estimation of their economic impact more difficult if the confounding factors affecting these mechanisms also affect the economic performance of the firms. To disentangle the effect of both offshoring and innovation on firms’ performances from the effect of firm characteristics, the propensity score matching methodology in a multi-overlapping treatment setting is used. The study targets European countries using the EU-EFIGE/Bruegel-Unicredit dataset. Decisions to offshore and innovate do not seem to have a significant effect on productivity, whereas the decision to innovate only has a significant effect on firm profitability.
Calia, Pinuccia; D'Attoma, Ida; Pacei, Silvia
File in questo prodotto:
Eventuali allegati, non sono esposti

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11585/540321
 Attenzione

Attenzione! I dati visualizzati non sono stati sottoposti a validazione da parte dell'ateneo

Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
  • ???jsp.display-item.citation.isi??? ND
social impact