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Off-shoring and productivity growth in the Italian manufacturing industries

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  • F. Daveri
  • C. Jona-Lasinio

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Abstract

We employ input-output tables to study the relation between off-shoring and productivity growth in the Italian manufacturing industries in 1995-2003. Our results indicate that not all types of off-shoring are positively related to productivity growth. In particular, the international outsourcing of intermediates within the same industry (“narrow off-shoring”) is beneficial for productivity growth, while the off-shoring of services is not. We also find that the way in which off-shoring is measured may matter considerably. The positive relation between off-shoring of intermediates and productivity growth disappears when our direct measure of off-shoring is replaced with the Feenstra-Hanson measure employed in other studies.

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File URL: http://swrwebeco.econ.unipr.it/RePEc/pdf/I_2007-08.pdf
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Bibliographic Info

Paper provided by Department of Economics, Parma University (Italy) in its series Economics Department Working Papers with number 2007-EP08.

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Length: 35
Date of creation: 2007
Date of revision:
Handle: RePEc:par:dipeco:2007-ep08

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Keywords: International trade; Productivity growth; offshoring; Italian economy;

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  1. Brian Wixted & Norihiko Yamano & Colin Webb, 2006. "Input-Output Analysis in an Increasingly Globalised World: Applications of OECD's Harmonised International Tables," OECD Science, Technology and Industry Working Papers 2006/7, OECD Publishing.
  2. Mary Amiti & Shang-Jin Wei, 2006. "Service Offshoring and Productivity: Evidence from the United States," NBER Working Papers 11926, National Bureau of Economic Research, Inc.
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