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U.S. Manufacturing: Productivity, Offshoring, and Imports

  • Sebastiano Manzan

    ()

    (Baruch College)

  • Howard N. Ross

    ()

    (Baruch College)

Registered author(s):

    The impact of offshoring on average labor productivity is investigated on a panel of 17 manufacturing sectors between 1989-2006. As proxies for offshoring, we use imports and import penetration, defined as the ratio of imports to output. We disaggregate the universe of exporters into low wage countries, NAFTA and the rest of the world. Controlling for production inputs, significant increases in productivity are explained by the growth of imports weighted by import penetration. The exception are imports from NAFTA which have a negative impact on productivity.

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    File URL: http://www.accessecon.com/Pubs/EB/2011/Volume31/EB-11-V31-I4-P259.pdf
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    Article provided by AccessEcon in its journal Economics Bulletin.

    Volume (Year): 31 (2011)
    Issue (Month): 4 ()
    Pages: 2875-2883

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    Handle: RePEc:ebl:ecbull:eb-11-00519
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    1. Hartmut Egger & Peter Egger, . "International Outsourcing and the Productivity of Low-skilled Labour in the EU," WIFO Working Papers 152, WIFO.
    2. Michael W. Klein & Scott Schuh & Robert K. Triest, 2002. "Job creation, job destruction, and international competition: a literature review," Working Papers 02-7, Federal Reserve Bank of Boston.
    3. 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.
    4. Harry Bloch & James McDonald, 2001. "Import Competition and Labor Productivity," Journal of Industry, Competition and Trade, Springer, vol. 1(3), pages 301-319, September.
    5. 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.
    6. Karsten Bjerring Olsen, 2006. "Productivity Impacts of Offshoring and Outsourcing: A Review," OECD Science, Technology and Industry Working Papers 2006/1, OECD Publishing.
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