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

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  • Meyer, Thomas

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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Bibliographic 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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Keywords: International trade; comparative advantage; offshoring; India;

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  1. Gene M. Grossman & Esteban Rossi-Hansberg, 2006. "Trading Tasks: A Simple Theory of Offshoring," NBER Working Papers 12721, National Bureau of Economic Research, Inc.
  2. Richard Baldwin & Frederic Robert-Nicoud, 2007. "Offshoring: General Equilibrium Effects on Wages, Production and Trade," NBER Working Papers 12991, National Bureau of Economic Research, Inc.
  3. Kochhar, Kalpana & Kumar, Utsav & Rajan, Raghuram & Subramanian, Arvind & Tokatlidis, Ioannis, 2006. "India's pattern of development: What happened, what follows?," Journal of Monetary Economics, Elsevier, vol. 53(5), pages 981-1019, July.
  4. Gene M. Grossman & Esteban Rossi-Hansberg, 2006. "The rise of offshoring: it's not wine for cloth anymore," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 59-102.
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Cited by:
  1. Mukherjee, Sanchita, 2009. "Technology intensity of Indian merchandise exports," MPRA Paper 35694, University Library of Munich, Germany.
  2. Ricardo Rozemberg & Daniela Ramos & Andrés López & Juan Carlos Hallak & Andrea González & Roberto Bisang, 2014. "Public-Private Collaboration on Productive Development Policies in Argentina," IDB Publications 84496, Inter-American Development Bank.
  3. Johan Fourie & Dieter von Fintel, 2009. "World Rankings of Comparative Advantage in Service Exports," Working Papers 03/2009, Stellenbosch University, Department of Economics.

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