Market thickness and outsourcing services

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32 Citations (Scopus)

Abstract

This paper examines whether the outsourcing of business services is supported more in thicker local markets. In particular, I examine manufacturing plants' practices of outsourcing business services. Using plant-level data from the 1992 Annual Survey of Manufactures (ASM), I find evidence that supports the view that a plant's likelihood of outsourcing is greater in thicker local markets, while the extent of the effect varies across services.

Original languageEnglish
Pages (from-to)220-238
Number of pages19
JournalRegional Science and Urban Economics
Volume37
Issue number2
DOIs
Publication statusPublished - 2007 Mar
Externally publishedYes

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Keywords

  • Business service
  • In-house production
  • Outsourcing

ASJC Scopus subject areas

  • Economics and Econometrics

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