India's specialisation in IT exports: Offshoring can't defy gravity
India’s actual export specialisation in IT services is unrivalled by any comparable country and it is evidence of a strong comparative advantage. This paper finds that India owes its IT specialisation in part to its reliance on offshoring - driven by the supply of well-educated, English-speaking and affordable workers - but also to a shift away from high-tech manufacturing exports. Going forward, India's specialisation on IT and other high-tech exports may decline as rising wages erode one of the reasons for offshoring.
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- Richard E. Baldwin & Frédéric Robert-Nicoud, 2007.
"Offshoring: general equilibrium effects on wages, production and trade,"
LSE Research Online Documents on Economics
19720, London School of Economics and Political Science, LSE Library.
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- Gene M. Grossman & Esteban Rossi-Hansberg, 2006. "The rise of offshoring: it's not wine for cloth anymore," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 59-102.
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