productivity growth based on manufacturing industry data for 14 OECD countries from 1995 ? 2000. We find that the broad measure of … international outsourcing of material inputs to low income countries is significantly negatively related to productivity growth … percent of the growth of total factor productivity in the manufacturing sector in the selected OECD countries. …

We measure the contribution of firm-embedded productivity to cross-country income differences. By firm …-embedded productivity we refer to the components of productivity that differ across firms and that can be transferred internationally, such … face less competition in less-developed coun-tries, suggesting that firm-embedded productivity in those countries is scarce …

productivity are found to be the main factors determining relocation in the sector. These processes are facilitated by the …