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India's specialisation in IT exports: Offshoring can't defy gravity

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Author Info
Meyer, Thomas

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Abstract

India’s actual export specialisation in IT services is unrivalled by any comparable country and it is evidence of a strong comparative advantage. This paper finds that India owes its IT specialisation in part to its reliance on offshoring - driven by the supply of well-educated, English-speaking and affordable workers - but also to a shift away from high-tech manufacturing exports. Going forward, India's specialisation on IT and other high-tech exports may decline as rising wages erode one of the reasons for offshoring.

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File URL: http://mpra.ub.uni-muenchen.de/5780/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 5780.

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Date of creation: 15 Nov 2007
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Handle: RePEc:pra:mprapa:5780

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Related research
Keywords: International trade; comparative advantage; offshoring; India;

Find related papers by JEL classification:
O1 - Economic Development, Technological Change, and Growth - - Economic Development
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes
F1 - International Economics - - Trade
F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation

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  1. Johan Fourie & Dieter von Fintel, 2009. "World Rankings of Comparative Advantage in Service Exports," Working Papers 03/2009, Stellenbosch University, Department of Economics. [Downloadable!]
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