Determinants of Outsourcing in the Automobile Sector in India

This study involves the determination of outsourcing based on the market structure, technology imports and technical efficiency for the automotive sector in India. An important characteristic of this study is that it divides the automotive sector into two subsectors: (1) the automobile ancillaries sectors, which provides the parts and constitute the upstream firms and (2) the automobile assemblers who assemble the automobiles and sell them to the consumers. Our analysis confirms the fact that when the data is segregated in the two sectors, factors like technical efficiency of firms have opposite effect on the outsourcing tendencies.