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Impacts of Service Offshoring on Productivity and Employment: Evidence from Korea

Author

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  • Park , Soonchan

    (Kongju University)

Abstract

This paper estimates the effects of service offshoring on productivity and employment in Korean manufacturing industries during the period from 1995 to 2005. It applies a dynamic panel approach to address the potential endogeneity problem. We find that service offshoring has a significant positive impact of productivity, but no significant effects on total employment. Considering that the responses of heterogeneous labor to service offshoring may be different, we separately estimate the impacts of service offshoring on white-collar and blue-collar employment. The empirical results show that service offshoring raises white-collar employment, but has no significant effects on blue-collar employment. Finally, we find that material offshoring lowers blue-collar employment.

Suggested Citation

  • Park , Soonchan, 2009. "Impacts of Service Offshoring on Productivity and Employment: Evidence from Korea," East Asian Economic Review, Korea Institute for International Economic Policy, vol. 13(2), pages 175-201, December.
    • Handle: RePEc:ris:eaerev:0119
    DOI: 10.11644/KIEP.JEAI.2009.13.2.205
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    Cited by:

    1. Chung, Sung Hoon, 2016. "Korea's Participation in Global Value Chains: Measures and Implications," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 38(4), pages 45-76.

    More about this item

    Keywords

    Service Offshoring; Productivity; Employment; White-collar Employment; Blue-collar Employment;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F20 - International Economics - - International Factor Movements and International Business - - - General

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