The Effects of Offshoring to China: Reallocation, Employment and Productivity in Taiwan
AbstractWe examine the extent to which outward FDI from Taiwan to mainland China has contributed to the rising unemployment rate in Taiwan. Further, it examines whether outward FDI has contributed to productivity growth in Taiwan, and the importance of linkages between sectors in determining these effects. We provide strong evidence that Taiwanese firms have increased their investments in China, and that this has lead to a reduction in employment in such sectors at home. Further, we show that these effects are also translated up the supply chain, such that outward FDI also leads to a reduction in employment upstream in the supply chain.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal International Journal of the Economics of Business.
Volume (Year): 16 (2009)
Issue (Month): 1 ()
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- Dierk Herzer, 2010.
"The Long-Run Relationship between Outward FDI and Total Factor Productivity: Evidence for Developing Countries,"
Ibero America Institute for Econ. Research (IAI) Discussion Papers
199, Ibero-America Institute for Economic Research.
- Herzer, Dierk, 2011. "The Long-Run Relationship between Outward FDI and Total Factor Productivity: Evidence for Developing Countries," Proceedings of the German Development Economics Conference, Berlin 2011 41, Verein für Socialpolitik, Research Committee Development Economics.
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