OUTSOURCING AND FRAGMENTATION IN SINGAPORE'S MANUFACTURING INDUSTRY

This paper studies the impact of outsourcing on productive performance of manufacturing industries in Singapore. The paper develops an outsourcing measure based on the narrow definition of intermediate imports given by Feenstra and Hanson (1996, 1999). Based on the input-output tables, the study use...

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Veröffentlicht in:Singapore economic review 2008-12, Vol.53 (3), p.539-557
Hauptverfasser: THANGAVELU, SHANDRE M., TOH, MUN HENG, NG, KWAN KEE
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creator THANGAVELU, SHANDRE M.
TOH, MUN HENG
NG, KWAN KEE
description This paper studies the impact of outsourcing on productive performance of manufacturing industries in Singapore. The paper develops an outsourcing measure based on the narrow definition of intermediate imports given by Feenstra and Hanson (1996, 1999). Based on the input-output tables, the study uses 5-digit industrial-level classifications to measure the impact of outsourcing on productivity of the manufacturing industries in Singapore from 1995–2004. The outsourcing measure is further decomposed by import of services, import of IT services and import of business services. This decomposition allows us to study the impact of outsourcing of services in addition to the cross-border fragmentation of products and components. The results suggest strong positive impact of cross-border sourcing on the productivity of the manufacturing sector. The decomposition of outsourcing measure indicates that the manufacturing industries are more involved in cross-border sourcing of services, particularly in business services.
doi_str_mv 10.1142/S0217590808003099
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source RePEc; EBSCOhost Business Source Complete
subjects Benchmarks
Business services
Decomposition
East Asia
Economic theory
Impact analysis
Industrial productivity
Interindustry economics
Location of industry
Manufacturers
Manufacturing
Offshoring
Outsourcing
Production internationalization
Productivity
Services
services outsourcing
Singapore
Studies
Subcontracting
title OUTSOURCING AND FRAGMENTATION IN SINGAPORE'S MANUFACTURING INDUSTRY
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