We present a dynamic model where the probability of outsourcing production is increasing in the firm’s expectation of … outsourcing. No prior study has been able to provide such causal evidence. Our results are robust to the inclusion of detailed … characteristics of the firms as well as firm fixed effects. -- Outsourcing ; technological change …

Spain. In particular, survey respondents are asked how their contracting practices of peripheral services had changed in the … integration to changes in other relevant plant characteristics. We show that increases in outsourcing of services are positively …