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Fear of Outsourcing: Is It Justified?

Author

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  • Wei, Shang-Jin
  • Amiti, Mary

Abstract

The recent media and political attention on service outsourcing from developed to developing countries gives the impression that outsourcing is exploding. As a result, workers in industrial countries are anxious about job losses. This Paper aims to establish what are the hypes and what are the facts. The results show that although service outsourcing has been steadily increasing it is still very low, and that in the United States and many other industrial countries ?insourcing? is greater than outsourcing. Using the United Kingdom as a case study, we find that job growth at a sectoral level is not negatively related to service outsourcing.

Suggested Citation

  • Wei, Shang-Jin & Amiti, Mary, 2004. "Fear of Outsourcing: Is It Justified?," CEPR Discussion Papers 4719, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:4719
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    More about this item

    Keywords

    Outsourcing; Offshoring; Services; Trade;
    All these keywords.

    JEL classification:

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

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