Service Off-shoring and Productivity Growth in the European Economies
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
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| Date of creation: | 2012 |
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| Handle: | RePEc:lui:lleewp:1296 |
| Contact details of provider: | Postal: Phone: 06 85225.550 Fax: 06 85225.973 Web page: http://ricerca.economiaefinanza.luiss.it/Email: More information through EDIRC
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