Offshoring and Productivity Revisited: A Time-Series Analysis

30 Pages Posted: 13 Apr 2013

See all articles by Pablo Agnese

Pablo Agnese

Universitat Internacional de Catalunya

Abstract

The subject of offshoring and productivity has not yet received the attention it deserves. Here I propose a simple framework for estimating the contribution of these strategies to the growth rate of labor productivity from a time-series perspective. This framework is then used to assess the impact of offshoring on skill upgrading and the labor share. For both empirical questions I take up the study of a group of Japanese industries during the recent years of slow growth. The results should be interpreted with caution yet clearly suggest that offshoring can improve labor productivity in the Semiconductors industry. Moreover, offshoring is found to be the source of important changes among industries with different skills (skill upgrading) and an important factor behind the fall of the labor share.

Keywords: offshoring, labor productivity, skill upgrading, labor share

JEL Classification: J23, J24, E25

Suggested Citation

Agnese, Pablo, Offshoring and Productivity Revisited: A Time-Series Analysis. IZA Discussion Paper No. 7323, Available at SSRN: https://ssrn.com/abstract=2250301 or http://dx.doi.org/10.2139/ssrn.2250301

Pablo Agnese (Contact Author)

Universitat Internacional de Catalunya ( email )

Immaculada 22
Barcelona, 08017
Spain

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