Productivity Gains from Offshoring: an Empirical Analysis for the Netherlands
AbstractA major question in the globalization debate is whether outsourcing and offshoring activities are beneficial to the home country. This paper investigates the effects on productivity and trade from the perspective of transaction costs, using a recent theory on trade in tasks. A production function is estimated for the Netherlands for the period 1972-2001. It suggests that the effect of offshoring manufacturing and services on total factor productivity (TFP) is positive and larger than the effect of R&D on productivity.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 07-089/3.
Date of creation: 23 Nov 2007
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globalization; offshoring; foreign direct investments; transaction costs; total factor productivity;
Find related papers by JEL classification:
- F10 - International Economics - - Trade - - - General
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-02-23 (All new papers)
- NEP-BEC-2008-02-23 (Business Economics)
- NEP-EFF-2008-02-23 (Efficiency & Productivity)
- NEP-INT-2008-02-23 (International Trade)
- NEP-OPM-2008-02-23 (Open Economy Macroeconomic)
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