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Dynamic Gains from U.S. Services Offshoring: A Critical View

In: Global Capitalism Unbound

Author

Listed:
  • William Milberg
  • Melissa Mahoney
  • Markus Schneider
  • Rudi Arnim

Abstract

The explosion over the past ten years of U.S. imports of information technology (IT) and IT-enabled services has been a clear boon to the economies of India, China, Singapore, the Philippines, and a number of other developing countries. But there is a considerable debate about the welfare effects of offshoring for the United States. International trade economists generally agree that in the short run the surge in offshoring has brought efficiency gains, but it has not been beneficial to U.S. welfare overall because of inadequate assistance to displaced workers. Accordingly, most economists support an expansion of Trade Adjustment Assistance (TAA)—which currently only covers manufacturing—and a wage insurance plan funded by a tax on employers.

Suggested Citation

  • William Milberg & Melissa Mahoney & Markus Schneider & Rudi Arnim, 2007. "Dynamic Gains from U.S. Services Offshoring: A Critical View," Palgrave Macmillan Books, in: Eva Paus (ed.), Global Capitalism Unbound, chapter 0, pages 77-93, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-60884-9_5
    DOI: 10.1057/9780230608849_5
    as

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