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Service off-shoring and productivity growth in the European economies

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  • Cecilia Jona-Lasinio

Abstract

We study the relation between service off-shoring and productivity growth in the manufacturing sector of a set of European economies in 1995-2005. We document that those countries resorting more to service off-shoring in 1995 experienced faster productivity growth in ICT/R&D intensive industries over the next decade. Our results show also that the productivity gap between more and less ICT/R&D intensive industries was relatively higher in those countries experimenting higher increases in service off-shoring intensity over the period. In both cases, ICT intensity is more relevant than R&D to explain the mechanism through which service off-shoring affects productivity growth. These findings are consistent with the enhancing productivity effects of the complementary relation between service off-shoring and ICT.

Suggested Citation

  • Cecilia Jona-Lasinio, 2015. "Service off-shoring and productivity growth in the European economies," Review of Economics and Institutions, Università di Perugia, vol. 6(2).
    • Handle: RePEc:pia:review:v:6:y:2015:i:2:n:4
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    Cited by:

    1. Ioannis Bournakis & Michela Vecchi & Francesco Venturini, 2018. "Off‐Shoring, Specialization and R&D," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 64(1), pages 26-51, March.

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    Keywords

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    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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