Japan and Her Dealings with Offshoring: An Empirical Analysis with Aggregate Data

42 Pages Posted: 21 Feb 2011

See all articles by Pablo Agnese

Pablo Agnese

Universitat Internacional de Catalunya

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First moves towards a real understanding of offshoring date back to very recent times. In particular for Japan, the studies conducted so far focus alone on the productivity effects of offshoring at the firm level. Here I carry out the analysis of both the employment and productivity effects at the aggregate level of the industry, covering the years 1980-2005. Moreover, I consider all industries within the economy and take account of both services and materials offshoring. My results suggest that we should expect, on average, a positive effect of services and a negative effect of materials offshoring on employment. However, the effects are rather negligible and only amount to a 1.5 to 2 percent net loss of the change in employment. On the other hand, positive effects on the growth rate of productivity are found as a result of both types of offshoring, with larger effects from services. In particular, the average offshoring industry displays 1.4 to 1.98 additional percentage points for services and 0.48 to 0.64 for materials.

Keywords: offshoring, Japan, employment, productivity

JEL Classification: F16, J23, O47

Suggested Citation

Agnese, Pablo, Japan and Her Dealings with Offshoring: An Empirical Analysis with Aggregate Data. IZA Discussion Paper No. 5517, Available at SSRN: https://ssrn.com/abstract=1765683 or http://dx.doi.org/10.2139/ssrn.1765683

Pablo Agnese (Contact Author)

Universitat Internacional de Catalunya ( email )

Immaculada 22
Barcelona, 08017

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