Service Offshoring, Productivity, And Employment: Evidence From The United States

Topics:
Organization
Tags:
Business Operations,
It Operations,
Offshoring,
Outsourcing,
Outsourcing & Subcontracting
Source:
International Monetary Fund

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Overview: This paper estimates the effects of offshoring on productivity in U.S. manufacturing industries between 1992 and 2000, using instrumental variables estimation to address the potential endogeneity of offshoring. It finds that service offshoring has a significant positive effect on productivity in the US, accounting for around 11 percent of productivity growth during this period. Offshoring material inputs also has a positive effect on productivity, but the magnitude is smaller accounting for approximately 5 percent of productivity growth. There is a small negative effect of less than half a percent on employment when industries are finely disaggregated (450 manufacturing industries).

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Format: PDF | Size: 773KB | Date: Dec 2005 | Pages: 38

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