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Offshoring and labor markets in developing countries

Author

Listed:
  • Arnab K. Basu

    (Cornell University, USA, and IZA, Germany)

  • Nancy H. Chau

    (Cornell University, USA, and IZA, Germany)

Abstract

Developing countries are often seen as unquestionable beneficiaries in the phenomenal rise of global value chains in international trade. Offshoring—the cross-border trade in intermediate goods and services which facilitate country-level specialization in subsets of production tasks—enables an early start in global trade integration even when the requisite technology and knowhow for cost-effective production from scratch to finish are not yet acquired. A growing economics literature suggests a more nuanced view, however. Policymakers should be mindful of issues related to inequality across firms and wages, labor standards, and effects of trade policy.

Suggested Citation

  • Arnab K. Basu & Nancy H. Chau, 2022. "Offshoring and labor markets in developing countries," IZA World of Labor, Institute of Labor Economics (IZA), pages 499-499, September.
    • Handle: RePEc:iza:izawol:journl:2022:n:499
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    References listed on IDEAS

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    9. Ernst, Christoph. & Sánchez-Ancochea, Diego., 2008. "Offshoring and employment in the developing world : the case of Costa Rica," ILO Working Papers 994130083402676, International Labour Organization.
    10. Cebreros Alfonso & Salcedo Alejandrina & Chiquiar Daniel & Heffner-Rodríguez Aldo, 2020. "Trade Policy Uncertainty and its Effect on Foreign Direct Investment: Evidence from Mexico," Working Papers 2020-14, Banco de México.
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    Cited by:

    1. Abreha,Kaleb & Gladys Lopez-Acevedo, 2024. "Trade Restructuring : Assessing Labor Market and Welfare Effects," Policy Research Working Paper Series 10955, The World Bank.

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    More about this item

    Keywords

    offshoring; globalization; labor markets in developing countries;
    All these keywords.

    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • F6 - International Economics - - Economic Impacts of Globalization

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