The Task Composition of Offshoring by U.S. Multinationals
AbstractRecent advances in communications technology allow for greater fragmentation of production across borders in both goods and services. However, this fragmentation is difficult to observe in the existing trade data. To get around this lack of data, several recent papers have used the task content of occupations as a proxy for offshorabilty. Up until this point, that relationship between tasks and offshorabilty has been based on intuition, rather than empirical evidence. In this paper, I use conSdential data from Srm-level surveys to offer the Srst empirical evidence on the link between tasks and offshoring. The results show that US multinationals are signiScantly more likely to perform a stage of production at a foreign afSliate the more intensively that input uses routine tasks, and the less intensively it uses communication tasks.
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Bibliographic InfoArticle provided by CEPII research center in its journal International Economics/Economie Internationale.
Volume (Year): (2012)
Issue (Month): 131 ()
Multinational Firms; Offshoring; International Trade;
Find related papers by JEL classification:
- F10 - International Economics - - Trade - - - General
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
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- Basco, Sergi & Mestieri, Martí, 2013.
"Heterogeneous trade costs and wage inequality: A model of two globalizations,"
Journal of International Economics,
Elsevier, vol. 89(2), pages 393-406.
- Basco, Sergi & Mestieri, Marti, 2013. "Heterogeneous Trade Costs and Wage Inequality: A Model of Two Globalizations," Open Access publications from University of Toulouse 1 Capitole http://neeo.univ-tlse1.fr, University of Toulouse 1 Capitole.
- Nathalie Chusseau & Michel Dumont, 2012. "Growing income inequalities in advanced countries," Working Papers 260, ECINEQ, Society for the Study of Economic Inequality.
- Hugo Rojas-Romagosa, 2011. "Wage inequality in trade-in-tasks models," CPB Discussion Paper 196, CPB Netherlands Bureau for Economic Policy Analysis.
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