This paper uses a panel of small and medium manufacturing firms in Australia and studies the relationship between … productivity and outsourcing accounting for the possibility of inefficient firms self-selecting into exit instead of outsourcing to … firms opt for exit shows that the impact of productivity on the outsourcing decision could be much larger than estimated so …

than the average firm to play that part. In Australia, manufacturing entrepreneurs are quite unproductive upon entry. Yet …Young firms are integral to productivity enhancing resources reallocation. However, they need to be more productive …, the productivity of those that survive makes a quantum leap in one year and starts to converge to that of the mature firms …