Input-Output Data and Service Outsourcing: A Reply to Dietrich, Mccarthy and Anagnostou

13 Pages Posted: 28 Dec 2006

See all articles by Giuseppe Vittucci Marzetti

Giuseppe Vittucci Marzetti

University of Milano-Bicocca - Department of Sociology and Social Research

Date Written: May 2006

Abstract

In a recent paper, McCarthy and Anagnostou (2004, The impact of outsourcing on the transaction costs and boundaries of manufacturing, International Journal of Production Economics, 88, pp. 61-71) use a decomposition approach put forward by Dietrich (1999, Explaining economic restructuring: an input-output analysis of organisational change in the European Union, International Review of Applied Economics, 13(2), pp. 219-40) to analyze the impact of contracting-out in the UK manufacturing decline over the '80s and the '90s.

Dietrich claims that this decomposition can distinguish the part of the manufacturing output decrease produced by the increased integration of services in manufacturing from the one which is instead produced by final demand-related changes.

This paper aims at critically examining Dietrich's decomposition approach and showing its flaws. In so doing, the paper also carefully analyzes the changes outsourcing produces in input-output tables. Thus, it might prove useful also in avoiding further mistakes in using input-output analysis for studying outsourcing-related changes in economic structure.

Keywords: Outsourcing, Input-output methodology, Dietrich's decomposition, Manufacturing

JEL Classification: E010, D570, L240, L600, O140

Suggested Citation

Vittucci Marzetti, Giuseppe, Input-Output Data and Service Outsourcing: A Reply to Dietrich, Mccarthy and Anagnostou (May 2006). Available at SSRN: https://ssrn.com/abstract=953919 or http://dx.doi.org/10.2139/ssrn.953919

Giuseppe Vittucci Marzetti (Contact Author)

University of Milano-Bicocca - Department of Sociology and Social Research ( email )

via Bicocca degli Arcimboldi, 8
Milano, MI 20126
Italy

HOME PAGE: http://https://www.unimib.it/giuseppe-vittucci-marzetti

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