We study the relation between the off-shoring of intermediates and services and productivity growth in the Italian manufacturing industries in 1995-2003. Our results indicate that the off-shoring of intermediates within the same industry (“narrow off-shoring”) is beneficial for productivity growth, while the off-shoring of services is not. We also find that the way in which off-shoring is measured may matter considerably. The positive relation between off-shoring of intermediates and productivity growth is there with our direct measures based on input-output data but disappears when either a broad measure or the Feenstra-Hanson off-shoring measure employed in other studies are used instead.
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Paper provided by CESifo GmbH in its series CESifo Working Paper Series with number
CESifo Working Paper No. 2288.
Find related papers by JEL classification: F16 - International Economics - - Trade - - - Trade and Labor Market Interactions F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
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