Abstract
This paper empirically investigates the relationship between institutional quality and outsourcing to developing economies. In contrast to cross-sectional studies on
institutions, this paper uses panel data for 76 countries over 25 years (1980-2004).
Employing panel data helps to show the causal relationship by controlling for the
fixed effects and dynamic factors. Using within and IV estimations, we find that
there is a positive effect of institutional quality on outsourcing in the lower-middle
income countries. The quality of institutions is not an important determinant of
outsourcing to either low or high income countries.
institutions, this paper uses panel data for 76 countries over 25 years (1980-2004).
Employing panel data helps to show the causal relationship by controlling for the
fixed effects and dynamic factors. Using within and IV estimations, we find that
there is a positive effect of institutional quality on outsourcing in the lower-middle
income countries. The quality of institutions is not an important determinant of
outsourcing to either low or high income countries.
| Original language | English |
|---|---|
| Place of Publication | Utrecht |
| Publisher | UU USE Tjalling C. Koopmans Research Institute |
| Number of pages | 24 |
| Publication status | Published - Feb 2009 |
Publication series
| Name | Discussion Paper Series / Tjalling C. Koopmans Research Institute |
|---|---|
| No. | 03 |
| Volume | 09 |
| ISSN (Electronic) | 2666-8238 |
Keywords
- Institutional quality
- Outsourcing
- Developing countries