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Productivity, outsourcing and exit: the case of Australian manufacturing

Bakhtiari, Sasan


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 selfselecting into exit instead of outsourcing to domestic suppliers. Estimating a propensity model on an unbalanced panel of firms and correcting for the selection bias when firms opt for exit shows that the impact of productivity on the outsourcing decision could be much larger than estimated...[Show more]

CollectionsANU Research Publications
Date published: 2015
Type: Journal article
Source: Small Business Economics
DOI: 10.1007/s11187-014-9604-2


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