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Fear of Outsourcing: Is It Justified?

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  • Amiti, Mary
  • Wei, Shang-Jin

Abstract

The recent media and political attention on service outsourcing from developed to developing countries gives the impression that outsourcing is exploding. As a result, workers in industrial countries are anxious about job losses. This Paper aims to establish what are the hypes and what are the facts. The results show that although service outsourcing has been steadily increasing it is still very low, and that in the United States and many other industrial countries ‘insourcing’ is greater than outsourcing. Using the United Kingdom as a case study, we find that job growth at a sectoral level is not negatively related to service outsourcing.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 4719.

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Date of creation: Oct 2004
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Handle: RePEc:cpr:ceprdp:4719

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Keywords: offshoring; outsourcing; services; trade;

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Cited by:
  1. Addison, John T. & Bellmann, Lutz & Pahnke, André & Teixeira, Paulino, 2008. "A Note on the Determinants and Consequences of Outsourcing Using German Data," IZA Discussion Papers 3608, Institute for the Study of Labor (IZA).
  2. Horgos, Daniel, 2009. "Labor market effects of international outsourcing: How measurement matters," International Review of Economics & Finance, Elsevier, vol. 18(4), pages 611-623, October.
  3. Jacob Funk Kirkegaard, 2005. "Outsourcing and Offshoring: Pushing the European Model Over the Hill, Rather Than Off the Cliff!," Working Paper Series WP05-1, Peterson Institute for International Economics.
  4. Kurt Kratena, 2010. "International outsourcing and the demand for skills," Empirica, Springer, vol. 37(1), pages 65-85, February.
  5. Debaere, Peter & Lee, Hongshik & Lee, Joonhyung, 2006. "Does Where You Go Matter? The Impact of Outward Foreign Direct Investment on Multinationals' Employment at Home," CEPR Discussion Papers 5737, C.E.P.R. Discussion Papers.
  6. Koskela, Erkki & Stenbacka, Rune, 2007. "Equilibrium Unemployment with Outsourcing under Labour Market Imperfections," IZA Discussion Papers 2628, Institute for the Study of Labor (IZA).
  7. Anna M. Falzoni & Lucia Tajoli, 2008. "Offshoring and the skill composition of employment in the Italian manufacturing industries," KITeS Working Papers 219, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Jul 2008.
  8. Lori G. Kletzer, 2005. "Globalization and job loss, from manufacturing to services," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q II, pages 38-46.
  9. Yusuf, Shahid & Nabeshima, Kaoru, 2005. "Japan's changing industrial landscape," Policy Research Working Paper Series 3758, The World Bank.
  10. Giovanni Ferri & Giovanni Costa, 2007. "The determinants and employment effects of international outsourcing: the case of Italy," series 0016, Dipartimento di Scienze Economiche e Metodi Matematici - Università di Bari, revised Apr 2007.
  11. Mary Amiti & Shang-Jin Wei, 2009. "Does Service Offshoring Lead to Job Losses? Evidence from the United States," NBER Chapters, in: International Trade in Services and Intangibles in the Era of Globalization, pages 227-243 National Bureau of Economic Research, Inc.
  12. Gál, Zoltán, 2010. "Future Bangalores? The increasing role of Central and Eastern Europe in the global services offshoring market: evidence from trade statistics," MPRA Paper 28360, University Library of Munich, Germany, revised 25 Oct 2010.
  13. J. Bradford Jensen & Lori G. Kletzer, 2005. "Tradable Services: Understanding the Scope and Impact of Services Outsourcing," Working Paper Series WP05-9, Peterson Institute for International Economics.
  14. Meenakshi Rishi & Sweta C. Saxena, 2005. "Is Outsourcing Really As Bad As It Is Made To Sound? A Re- Assessment And Some Perspective," Macroeconomics 0508009, EconWPA.
  15. Erkki Koskela & Rune Stenbacka, 2007. "Equilibrium Unemployment with Outsourcing under Labour Market Imperfections," CESifo Working Paper Series 1892, CESifo Group Munich.
  16. Patricia Waeger, 2007. "Trade in Health Services - An Analytical Framework Valuation Effects and Interest Rate Changes," Kiel Advanced Studies Working Papers 441, Kiel Institute for the World Economy.

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