Service Offshoring and Productivity: Evidence from the United States
AbstractThe practice of sourcing service inputs from overseas suppliers has been growing in response to new technologies that have made it possible to trade in some business and computing services that were previously considered non-tradable. This paper estimates the effects of offshoring on productivity in US manufacturing industries between 1992 and 2000. It finds that service offshoring has a significant positive effect on productivity in the US, accounting for around 10 percent of labor productivity growth during this period. Offshoring material inputs also has a positive effect on productivity, but the magnitude is smaller accounting for approximately 5 percent of productivity growth.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 11926.
Date of creation: Jan 2006
Date of revision:
Note: ITI PR
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Find related papers by JEL classification:
- F1 - International Economics - - Trade
- F2 - International Economics - - International Factor Movements and International Business
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-01-24 (All new papers)
- NEP-BEC-2006-01-24 (Business Economics)
- NEP-CSE-2006-01-24 (Economics of Strategic Management)
- NEP-EFF-2006-01-24 (Efficiency & Productivity)
- NEP-INT-2006-01-24 (International Trade)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Arellano, Manuel & Bond, Stephen, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Wiley Blackwell, vol. 58(2), pages 277-97, April.
- Tom Doan, . "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
- Sourafel Girma & Holger Görg, 2004.
"Outsourcing, Foreign Ownership, and Productivity: Evidence from UK Establishment-level Data,"
Review of International Economics,
Wiley Blackwell, vol. 12(5), pages 817-832, November.
- Sourafel Girma & Holger Görg, 2003. "Outsourcing, Foreign Ownership and Productivity: Evidence from UK Establishment Level Data," Discussion Papers of DIW Berlin 361, DIW Berlin, German Institute for Economic Research.
- Eric J. Bartelsman & Wayne Gray, 1996. "The NBER Manufacturing Productivity Database," NBER Technical Working Papers 0205, National Bureau of Economic Research, Inc.
- Amiti, Mary, 2005.
"Location of vertically linked industries: agglomeration versus comparative advantage,"
European Economic Review,
Elsevier, vol. 49(4), pages 809-832, May.
- Amiti, Mary, 2001. "Location of Vertically Linked Industries: Agglomeration versus Comparative Advantage," CEPR Discussion Papers 2800, C.E.P.R. Discussion Papers.
- Feenstra, Robert C & Hanson, Gordon H, 1996.
"Globalization, Outsourcing, and Wage Inequality,"
American Economic Review,
American Economic Association, vol. 86(2), pages 240-45, May.
- Amiti, Mary & Wei, Shang-Jin, 2006. "Service Offshoring, Productivity and Employment: Evidence from the US," CEPR Discussion Papers 5475, C.E.P.R. Discussion Papers.
- Caroline Freund & Diana Weinhold, 2002.
"The Internet and International Trade in Services,"
American Economic Review,
American Economic Association, vol. 92(2), pages 236-240, May.
- Freund, C.L. & Weinhold, D., 2002. "The internet and international trade in services," Open Access publications from University College London http://discovery.ucl.ac.u, University College London.
- Cordella, Tito & Grilo, Isabel, 1998.
"'Globalization' and Relocation in a Vertically Differentiated Industry,"
CEPR Discussion Papers
1863, C.E.P.R. Discussion Papers.
- Isabel Grilo & Tito Cordella, 1998. "Globalization and Relocation in a Vertically Differentiated Industry," IMF Working Papers 98/48, International Monetary Fund.
- Pol Antràs & Elhanan Helpman, 2003.
NBER Working Papers
10082, National Bureau of Economic Research, Inc.
- Pol Antras & Elhanan Helpman, 2003. "Global Sourcing," Harvard Institute of Economic Research Working Papers 2005, Harvard - Institute of Economic Research.
- Antràs, Pol & Helpman, Elhanan, 2004. "Global Sourcing," CEPR Discussion Papers 4170, C.E.P.R. Discussion Papers.
- Antras, Pol & Helpman, Elhanan, 2004. "Global Sourcing," Scholarly Articles 3196327, Harvard University Department of Economics.
- Helpman, Elhanan & Antras, Pol, 2004. "Global Sourcing," Scholarly Articles 4784029, Harvard University Department of Economics.
- Griliches, Zvi & Hausman, Jerry A., 1986.
"Errors in variables in panel data,"
Journal of Econometrics,
Elsevier, vol. 31(1), pages 93-118, February.
- David Hummels & Jun Ishii & Kei-Mu Yi, 1999.
"The nature and growth of vertical specialization in world trade,"
72, Federal Reserve Bank of New York.
- Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
- Avinash K. Dixit & Gene M. Grossman, 1982.
"Trade and Protection with Multistage Production,"
NBER Working Papers
0794, National Bureau of Economic Research, Inc.
- Hartmut Egger & Peter Egger, 2006.
"International Outsourcing and the Productivity of Low-Skilled Labor in the EU,"
Western Economic Association International, vol. 44(1), pages 98-108, January.
- Hartmut Egger & Peter Egger, . "International Outsourcing and the Productivity of Low-skilled Labour in the EU," WIFO Working Papers 152, WIFO.
- Ekholm, Karolina & Hakkala, Katariina, 2006.
"The Effect of Offshoring on Labour Demand: Evidence from Sweden,"
CEPR Discussion Papers
5648, C.E.P.R. Discussion Papers.
- Ekholm, Karolina & Hakkala, Katariina, 2005. "The Effect of Offshoring on Labor Demand: Evidence from Sweden," Working Paper Series 654, Research Institute of Industrial Economics.
- Berndt, Ernst R. & Morrison, Catherine J. & Rosenblum, Larry S., 1992.
"High-tech capital formation and labor composition in U.S. manufacturing industries : an exploratory analysis,"
3414-92., Massachusetts Institute of Technology (MIT), Sloan School of Management.
- Ernst R. Berndt & Catherine J. Morrison & Larry S. Rosenblum, 1992. "High-Tech Capital Formation and Labor Composition in U.S. Manufacturing Industries: An Exploratory Analysis," NBER Working Papers 4010, National Bureau of Economic Research, Inc.
- Ethier, Wilfred J, 1982. "National and International Returns to Scale in the Modern Theory of International Trade," American Economic Review, American Economic Association, vol. 72(3), pages 389-405, June.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statistics
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.