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Service Offshoring and Productivity: Evidence from the US

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Author Info

  • Mary Amiti
  • Shang-Jin Wei

Abstract

The practice of sourcing service inputs from overseas suppliers has been growing in response to new technologies that have made it possible to trade in some business and computing services that were previously considered non-tradable. This paper estimates the effects of offshoring on productivity in US manufacturing industries between 1992 and 2000. It finds that service offshoring has a significant positive effect on productivity in the United States, accounting for around 10 per cent of labour productivity growth during this period. Offshoring material inputs also have a positive effect on productivity, but the magnitude is smaller accounting for approximately 5 per cent of productivity growth. Copyright 2009 Federal Reserve Bank of New York. Journal compilation 2009 Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal World Economy.

Volume (Year): 32 (2009)
Issue (Month): 2 (02)
Pages: 203-220

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Handle: RePEc:bla:worlde:v:32:y:2009:i:2:p:203-220

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Citations

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Cited by:
  1. Salvador Barrios & Holger Görg & Eric Strobl, 2009. "Spillovers through backward linkages from multinationals: Measurement matters!," Kiel Working Papers 1560, Kiel Institute for the World Economy.
  2. Ann Harrison & John McLaren & Margaret S. McMillan, 2010. "Recent Findings on Trade and Inequality," NBER Working Papers 16425, National Bureau of Economic Research, Inc.
  3. William W. Olney, 2008. "Offshoring, Immigration, and the Native Wage Distribution," Department of Economics Working Papers 2010-12, Department of Economics, Williams College, revised Feb 2011.
  4. Rosario Crinò, 2012. "Service Offshoring and the Skill Composition of Labour Demand," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 74(1), pages 20-57, 02.
  5. Tobal, Martin, 2011. "A Rationale For Evidence On Service Offshoring," University of California at San Diego, Economics Working Paper Series qt5s4056z6, Department of Economics, UC San Diego.
  6. Daniel C. Hickman & William W. Olney, 2010. "Globalization and Investment in Human Capital," Department of Economics Working Papers 2010-18, Department of Economics, Williams College.
  7. William W. Olney, 2008. "Do Firms Respond to Immigration?," Department of Economics Working Papers 2010-13, Department of Economics, Williams College, revised Jan 2011.
  8. Kikuchi, Toru & Long, Ngo Van, 2010. "A simple model of service offshoring with time zone differences," The North American Journal of Economics and Finance, Elsevier, vol. 21(3), pages 217-227, December.
  9. Tillmann Schwörer, 2012. "Offshoring, Domestic Outsourcing, and Productivity: Evidence for a Number of European Countries," Kiel Working Papers 1786, Kiel Institute for the World Economy.
  10. Daniel Horgos, 2010. "A Ricardo-Viner Approach to Service Offshoring," Development Working Papers 290, Centro Studi Luca d\'Agliano, University of Milano, revised 30 Apr 2010.

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