A Ricardo-Viner Approach to Offshoring
17 Pages Posted: 22 Jul 2010
Date Written: April 1, 2010
Empirical contributions on service offshoring show less pronounced labor market implications than with material offshoring. Since no formal model exists investigating service offshoring in particular, empirical examinations are not based on properly defined hypothesis. This contribution formalizes service offshoring within a Ricardo-Viner specific factors model. As service offshoring is assumed to expand the range of possible offshoring scenarios, results differ from those of material offshoring. The different scenarios have opposite implications and sum up to marginal effects in the aggregate. This theoretical contribution thus is capable of explaining empirical ﬁndings so far and provides clear testable hypotheses for future research.
Keywords: Service Offshoring, Trade in Services, Specific Factors Model
JEL Classification: F16, F40
Suggested Citation: Suggested Citation
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