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Quantifying The Outsourcing Of Jobs From Manufacturing To Services

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  • Fiona Tregenna

Abstract

There has been debate internationally and in South Africa about the extent to which a relative decline in manufacturing employment and rise in services employment can be accounted for by intersectoral outsourcing of jobs in the domestic economy. This article develops a new methodology for testing for and quantifying outsourcing at an economy-wide level. This methodology is used to analyse intersectoral shifts in employment in South Africa between 1997 and 2005. Trends in employment in the business services subsector of services are also examined for what they suggest about the extent of outsourcing. Overall, the results suggest that intersectoral outsourcing accounts for some but by no means all of the apparent shift in employment between the manufacturing and services sectors in South Africa. Copyright (c) 2008 The Author. Journal compilation (c) 2008 Economic Society of South Africa.

Suggested Citation

  • Fiona Tregenna, 2008. "Quantifying The Outsourcing Of Jobs From Manufacturing To Services," South African Journal of Economics, Economic Society of South Africa, vol. 76(s2), pages 222-238, August.
    • Handle: RePEc:bla:sajeco:v:76:y:2008:i:s2:p:s222-s238
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    1. Ramana Ramaswamy & Bob Rowthorn, 1997. "Deindustrialization; Causes and Implications," IMF Working Papers 97/42, International Monetary Fund.
    2. Katouzian, M A, 1970. "The Development of the Service Sector: A New Approach," Oxford Economic Papers, Oxford University Press, vol. 22(3), pages 362-382, November.
    3. Lori G. Kletzer, 2005. "Globalization and job loss, from manufacturing to services," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q II, pages 38-46.
    4. Ajit Singh & Sukti Dasgupta, 2005. "Will services be the new engine of economic growth in India?," Working Papers wp310, Centre for Business Research, University of Cambridge.
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    Cited by:

    1. Tregenna, F., 2009. "Contracting Out of Service Activities and the Effects on Sectoral Employment Patterns in South Africa," Cambridge Working Papers in Economics 0906, Faculty of Economics, University of Cambridge.

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