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A rigorous approach to business services offshoring and North--North trade

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  • Barbara Dluhosch
  • Thorsten Hens

Abstract

Advances in information and communication technologies (ICTs) have gained economy-wide importance and raised concerns that even within North--North trade neither services nor high-skilled labour may be sheltered from international competition. Rather, both may be increasingly susceptible to offshoring. We present a novel theoretical framework for analysing offshoring with a focus on skilled labour in managing value-added chains. Thoroughly modelling demand and supply allows to explicitly track cause and effects. Accordingly, effects of business service offshoring are completely different and more diverse than those of material offshoring, with the effects inter alia depending on whether triggered by trade integration or ICT.

Suggested Citation

  • Barbara Dluhosch & Thorsten Hens, 2016. "A rigorous approach to business services offshoring and North--North trade," Applied Economics, Taylor & Francis Journals, vol. 48(15), pages 1390-1401, March.
    • Handle: RePEc:taf:applec:v:48:y:2016:i:15:p:1390-1401
    DOI: 10.1080/00036846.2015.1100259
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    References listed on IDEAS

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    1. J. Bradford Jensen, 2011. "Global Trade in Services: Fear, Facts, and Offshoring," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 6017, January.
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    Cited by:

    1. Barbara Dluhosch & Daniel Horgos, 2019. "International Competition Intensified: Job Satisfaction Sacrificed?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(2), pages 479-504, June.
    2. Linda Andersson & Patrik Karpaty & Selen Savsin, 2017. "Labour Demand, Offshoring and Inshoring: Evidence from Swedish Firm-level Data," The World Economy, Wiley Blackwell, vol. 40(2), pages 240-274, February.
    3. Sabina Szymczak, 2023. "Systematic literature review: theory on GVCs' impact on wages, employment, and productivity," GUT FME Working Paper Series A 71, Faculty of Management and Economics, Gdansk University of Technology.
    4. Barbara Dluhosch, 2018. "Trade, Inequality, and Subjective Well-Being: Getting at the Roots of the Backlash Against Globalization," LIS Working papers 741, LIS Cross-National Data Center in Luxembourg.

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