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How Offshoring and Global Supply Chains Enhance the US Economy

Author

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  • Theodore H. Moran

    (Peterson Institute for International Economics)

  • Lindsay Oldenski

    (Peterson Institute for International Economics)

Abstract

The 2016 US presidential election campaign has rekindled the debate over offshoring—locating business operations and jobs overseas—by US-based multinational corporations (MNCs). Some presidential candidates have assailed investments abroad by US-based MNCs as damaging to economic growth and jobs at home. They have proposed imposing a higher tax on US companies that engage in offshoring and outsourcing. These proposals will not not bring back the lost jobs and plants. Instead they would disrupt global supply chains that link the US economy to the rest of the world and are crucial for US exports and US employment, ultimately harming US competitiveness worldwide and threatening existing jobs. In addition, protectionist efforts to impede trade will likely trigger a backlash from trading partners.

Suggested Citation

  • Theodore H. Moran & Lindsay Oldenski, 2016. "How Offshoring and Global Supply Chains Enhance the US Economy," Policy Briefs PB16-5, Peterson Institute for International Economics.
    • Handle: RePEc:iie:pbrief:pb16-5
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    Cited by:

    1. Jovanović, Miroslav N., 2019. "The Supply Chain Economy: How Far does it Spread in Space and Time?," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 72(4), pages 393-452.
    2. Sinem Kilic Celik & M. Ayhan Kose & Franziska Ohnsorge & F. Ulrich Ruch, 2023. "Potential Growth: A Global Database," CAMA Working Papers 2023-20, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.

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