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Task dependence of U.S. service offshoring patterns

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  • Püschel, Julia

Abstract

This work offers new insights into the determinants of service offshoring across countries and across service industries. Combining different data sources over the 2006-2009 period, I find that certain country characteristics affect offshoring costs for all services, while the effects of other characteristics depend on the coordination requirements of the respective service industry. The results from a zero-inflated Poisson pseudomaximum likelihood estimation indicate that the effects of a membership in NAFTA, and a common colonial past on service offshoring patterns depend on the task content of the services. These results are robust to the control for unobservable country-level heterogeneity. The quality of legal institutions, a common legal origin, geographic distance, and time zone differences influence offshoring patterns identically across all service industries.

Suggested Citation

  • Püschel, Julia, 2012. "Task dependence of U.S. service offshoring patterns," Discussion Papers 2012/15, Free University Berlin, School of Business & Economics.
    • Handle: RePEc:zbw:fubsbe:201215
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    More about this item

    Keywords

    Offshoring; Services; Tasks; Coordination; Poisson pseudo-maximum likelihood;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F20 - International Economics - - International Factor Movements and International Business - - - General

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