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A Ricardo-Viner Approach to Service Offshoring

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  • Daniel Horgos

    ()
    (Centro Studi Luca d’Agliano and Helmut Schmidt University)

Abstract

Empirical contributions on service offshoring show less pronounced labor market implications than with material offshoring. Since no formal model exists investigating service offshoring in particular, empirical examinations are not based on properly defined hypothesis. This contribution formalizes service offshoring within a Ricardo-Viner specific factors model. As service offshoring is assumed to expand the range of possible offshoring scenarios,results differ from those of material offshoring. The different scenarios have opposite implications and sum up to marginal effects in the aggregate. This theoretical contribution thus is capable of explaining empirical findings so far and provides clear testable hypotheses for future research.

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File URL: http://www.dagliano.unimi.it/media/WP2010_290.pdf
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Bibliographic Info

Paper provided by Centro Studi Luca d\'Agliano, University of Milano in its series Development Working Papers with number 290.

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Length: 17
Date of creation: 30 Apr 2010
Date of revision: 30 Apr 2010
Handle: RePEc:csl:devewp:290

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Keywords: service offshoring; trade in services; specific factors model;

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  1. Rosario Crinò, 2009. "Service Offshoring and White-Collar Employment," Working Papers 391, Barcelona Graduate School of Economics.
  2. Mary Amiti & Shang-Jin Wei, 2004. "Fear of Service Outsourcing: Is it Justified?," IMF Working Papers 04/186, International Monetary Fund.
  3. Mary Amiti & Shang-Jin Wei, 2009. "Service Offshoring and Productivity: Evidence from the US," The World Economy, Wiley Blackwell, vol. 32(2), pages 203-220, 02.
  4. Jagdish Bhagwati & Arvind Panagariya & T. N. Srinivasan, 2004. "The Muddles over Outsourcing," International Trade 0408004, EconWPA.
  5. Gorg, Holger & Hanley, Aoife, 2005. "Labour demand effects of international outsourcing: Evidence from plant-level data," International Review of Economics & Finance, Elsevier, vol. 14(3), pages 365-376.
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