Data Management

International Outsourcing Over The Business Cycle: Some Intuition For Germany, The Czech Republic And Slovakia

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Executive Summary

In this paper, the authors assess the extent to which multinational firms - in the first instance, the German ones - may adjust their international outsourcing over the business cycle in the Czech Republic and Slovakia. For that purpose, they have used monthly data of production for the manufacturing sector as a whole and some of its sub-sectors, since 2000 onwards. The econometrical estimates suggest that there would be an asymmetry in the international outsourcing across the states of the economy, meaning that multinationals firms would be engaged differently in outsourcing activities, depending on whether bad or good economic times occur.

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