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Does Offshoring Still Play a Role in the Decline in Manufacturing Employment?

Author

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  • Camille Beaurepaire
  • Victor Lavialle

Abstract

[eng] Government authorities and the media regularly show great interest in offshoring due to its role in manufacturing employment’s decline, in particular. However, it remains difficult to quantify company offshoring given that it can be defined in multiple ways. This article updates the literature’s previous research while proposing a new and improved methodological framework for identifying offshoring, based on machine learning methods applied to INSEE’s Chaînes d’activité mondiales (CAM) survey. Our analysis, which covers 1995–2018, shows that the number of offshoring companies has decreased slightly following the global financial crisis of 2009. We show that offshoring is procyclical and describe the characteristics of the offshored jobs and offshoring companies. A causal econometric estimate of the annual average number of jobs offshored indicates offshoring’s continuing macroeconomic influence on the dynamics of French manufacturing employment.

Suggested Citation

  • Camille Beaurepaire & Victor Lavialle, 2023. "Does Offshoring Still Play a Role in the Decline in Manufacturing Employment?," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 540, pages 21-42.
    • Handle: RePEc:nse:ecosta:ecostat_2023_540_2
    DOI: https://doi.org/10.24187/ecostat.2023.540.2101
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    References listed on IDEAS

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    4. Gordon H. Hanson, 2017. "What Do We Really Know about Offshoring? Industries and Countries in Global Production Sharing," Development Working Papers 416, Centro Studi Luca d'Agliano, University of Milano.
    5. Alexander Hijzen & Sébastien Jean & Thierry Mayer, 2011. "The effects at home of initiating production abroad: evidence from matched French firms," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 147(3), pages 457-483, September.
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