Year: 2015
Author: Eickelpasch, Alexander
Vierteljahrshefte zur Wirtschaftsforschung, Vol. 84 (2015), Iss. 1 : pp. 55–77
Abstract
The extent and structure of outsourcing and offshoring since 1971 is examined in this paper. Official statistics show that the share of intermediate inputs on production in German industry has increased significantly since the mid-1990s, both at current prices and price-adjusted. The share leveled off in the last years at a level of nominal 68 percent. Business cycle influences on the development of outsourcing and offshoring are low. Outsourcing varies by sector and size of enterprise. In some knowledge-intensive industries, such as pharmaceuticals and engineering, outsourcing is low and has barely increased. For large companies, outsourcing is more pronounced than for small ones. Comparing of the development of the share of intermediate inputs and the wage ratio suggests that labor costs as a reason to outsourcing has decreased. Also, offshoring has increased. The share of imported inputs in the purchase of intermediate inputs has increased significantly since the 1990s. In 2010, one third of intermediate inputs were imported, one-fifth of that from other EU countries. Imports from EU countries have grown much faster than those from the rest of the world. Thus, European Union members benefit from German offshoring. A rough estimate of outsourcing effects shows that the employment generated significantly exceeds direct employment in the industry.
Journal Article Details
Publisher Name: Global Science Press
Language: German
DOI: https://doi.org/10.3790/vjh.84.1.55
Vierteljahrshefte zur Wirtschaftsforschung, Vol. 84 (2015), Iss. 1 : pp. 55–77
Published online: 2015-03
AMS Subject Headings: Duncker & Humblot, Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 23
Keywords: Manufacturing outsourcing offshoring global value chains European Union D23 D57 L24
Author Details
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