A Ricardo-Viner Approach to Offshoring

17 Pages Posted: 22 Jul 2010

See all articles by Daniel Horgos

Daniel Horgos

University of the German Federal Armed Forces - Department of Economics

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

Horgos, Daniel, A Ricardo-Viner Approach to Offshoring (April 1, 2010). Centro Studi Luca d'Agliano Development Studies Working Paper No. 290, Available at SSRN: https://ssrn.com/abstract=1646933 or http://dx.doi.org/10.2139/ssrn.1646933

Daniel Horgos (Contact Author)

University of the German Federal Armed Forces - Department of Economics ( email )

Holstenhofweg 85
Hamburg, 22043

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