Contracting and the Service Economy

Simon Domberger

in The Contracting Organization

Published in print November 1998 | ISBN: 9780198774570
Published online November 2003 | e-ISBN: 9780191596148 | DOI:
 Contracting and the Service Economy

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This chapter, the previous one, and the following one look at the structural changes that have resulted from the economy‐wide application of contracting out. The public sector is, perhaps, the one that has been most profoundly affected by it, and about which controversy concerning the appropriate scope of private and public production continues to smoulder. Chapter 10 analyses the structural changes in three major economies, the UK, USA, and Australia, and the role that contracting for services has played in bringing about those changes. This is done by using national accounts statistics to examine shifts in employment and output between sectors at a reasonably disaggregated level. The different parts of the chapter are as follows: The nature and significance of services in the economy; Producer services––the growth of intermediate transactions; Contracting for services and the productivity puzzle; and Contracting and producer services––which causes which?

Keywords: Australia; contracting out; employment; intermediate transactions; output; outsourcing; producer services; productivity; public sector; service economy; structural changes; UK; USA

Chapter.  6966 words.  Illustrated.

Subjects: Microeconomics

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