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Offshoring and Specialisation: Are Industries Moving Abroad?

  • Ioannis Bournakis
  • Michela Vecchi
  • Francesco Venturini

This paper investigates the impact of off-shoring on specialisation via its effect on national endowments and productivity. We use different definition of off-shoring to properly capture international fragmentation of production, while controlling for countries? stocks of R&D and ICT capital. Using industry data for the US, Japan and Europe we show that while offshoring of materials can benefit a wide range of industries, service and intra-industry offshoring can decrease specialisation in high-tech industry, both within manufacturing and services. This effect can be compensated with increasing R&D investments.

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Paper provided by Università di Perugia, Dipartimento Economia in its series Quaderni del Dipartimento di Economia, Finanza e Statistica with number 98/2011.

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Length: 44 pages
Date of creation: 01 Dec 2011
Date of revision:
Handle: RePEc:pia:wpaper:98/2011
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