Resource title

Outsourcing of services, imported materials and the demand for heterogeneous labour : an application of a generalised box-cox function

Resource image

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Resource description

This paper examines the effects that purchased services and imported intermediate materials have on the labour demand for different skills in the manufacturing sector. We derive and estimate a factor demand system based on the generalised Box-Cox cost function nesting both the normalised quadratic and the translog functional form. We find that the impacts of output and capital growth are more important in explaining the demand for heterogeneous labour than substitution effects between labour and non-labour inputs. Similarly, the increasing use of both imported materials and purchased services is rather a consequence of output growth than input substitution.

Resource author

Martin Falk, Bertrand M. Koebel

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/24399

Resource license

Adapt according to the presented license agreement and reference the original author.