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Material Offshoring: Alternate Measures

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  • Baldwin, John R.
  • Gu, Wulong
  • Sydor, Aaron
  • Yan, Beiling

Abstract

In order to study the importance of material offshoring (defined in this paper as the use of intermediate imported materials) at the industry level, it is generally assumed that the import share of each input commodity for a particular industry is similar to that for the economy as a whole-because import data tend to be available only for the latter. This is referred to as the proportionality-based measure of offshoring. Recent advances in administrative trade data permit the development of more industry-specific measures of imports. However, these measures generally capture the agent that engages in importation. These firms may only be performing an intermediation role and may be located in industries (e.g., trade or finance) that differ from the industry of use. This study reports on these more direct measures of industry imports using Canadian micro import data as well as hybrid measures that make use of both input and import information. Estimates from various alternatives are then compared to estimates derived from a survey that asked for information on import intensity as part of a more general investigation of innovation.

Suggested Citation

  • Baldwin, John R. & Gu, Wulong & Sydor, Aaron & Yan, Beiling, 2013. "Material Offshoring: Alternate Measures," Economic Analysis (EA) Research Paper Series 2013086e, Statistics Canada, Analytical Studies Branch.
  • Handle: RePEc:stc:stcp5e:2013086e
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    References listed on IDEAS

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    1. Robert C. Feenstra & Gordon H. Hanson, 1999. "The Impact of Outsourcing and High-Technology Capital on Wages: Estimates For the United States, 1979–1990," The Quarterly Journal of Economics, Oxford University Press, vol. 114(3), pages 907-940.
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    5. Feenstra, Robert C. & Jensen, J. Bradford, 2012. "Evaluating estimates of materials offshoring from US manufacturing," Economics Letters, Elsevier, vol. 117(1), pages 170-173.
    6. Hummels, David & Ishii, Jun & Yi, Kei-Mu, 2001. "The nature and growth of vertical specialization in world trade," Journal of International Economics, Elsevier, vol. 54(1), pages 75-96, June.
    7. Robert Koopman & William Powers & Zhi Wang & Shang-Jin Wei, 2010. "Give Credit Where Credit Is Due: Tracing Value Added in Global Production Chains," NBER Working Papers 16426, National Bureau of Economic Research, Inc.
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    1. repec:eee:rensus:v:77:y:2017:i:c:p:536-550 is not listed on IDEAS

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    Keywords

    International trade; Merchandise imports;

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