We investigate the impact of international outsourcing on productivity using plant level data for Irish manufacturing …. Specifically, we distinguish the effect of outsourcing of materials from services inputs. Moreover, we examine whether the impact … on productivity is different for plants being more embedded in international markets through exporting or being part of a …

's productivity. We compare outsourcing in domestic with foreign-owned establishments. Our empirical results suggest that high wages …-owned firms have higher levels of outsourcing than domestic establishments. In the productivity analysis we find that an … establishment's outsourcing intensity is positively related to its labour productivity and total factor productivity growth and that …