The Economics of Offshoring: Theory and Evidence with Applications to Asia

The Singapore Economic Review, Vol. 53, No. 3, pp. 357-369, 2008

Posted: 8 Dec 2009

See all articles by Devashish Mitra

Devashish Mitra

Syracuse University - Department of Economics; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Priya Ranjan

University of California, Irvine - Department of Economics

Date Written: December 1, 2008

Abstract

This paper is a non-technical survey of the literature on offshoring and outsourcing, with special focus on the relevance of this literature for Asia. We first see how and to what extent this new literature helps us understand firms' tradeoffs between outsourcing and integration, the variation in the mixes of organizational forms and the location of outsourced activities. We also explore what plausibly triggers offshoring and thereafter what determines its dynamics. Finally, we draw inferences from the existing theory and empirical work about the developmental impact of offshoring on Asia, with special attention to issues related to inequality and poverty.

Keywords: Offshoring, outsourcing, fragmentation, Asia, inequality, poverty

Suggested Citation

Mitra, Devashish and Ranjan, Priya, The Economics of Offshoring: Theory and Evidence with Applications to Asia (December 1, 2008). The Singapore Economic Review, Vol. 53, No. 3, pp. 357-369, 2008 . Available at SSRN: https://ssrn.com/abstract=1503767

Devashish Mitra (Contact Author)

Syracuse University - Department of Economics ( email )

The Maxwell School of Citizenship & Public Affairs
133 Eggers Hall
Syracuse, NY 13244-1020
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Priya Ranjan

University of California, Irvine - Department of Economics ( email )

3151 Social Science Plaza
Irvine, CA 92697-5100
United States

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