How, What, and Where to Offshore: A Productivity Comparison at the Firm Level

Posted: 23 Jun 2011

See all articles by Hongshik Lee

Hongshik Lee

Korea Institute for International Economic Policy (KIEP)

Date Written: June, 22 2011

Abstract

Research objective: We focus first on the relationship between offshoring modes and productivity. In particular, we analyze and compare the relationship across groups: non-offshoring, international outsourcing, and FDI. The second area of focus is material offshoring and service offshoring and their relationship with productivity. While most previous studies focus on material offshoring, the dataset we use can distinguish service offshoring from material offshoring. As more practical attention is drawn to service offshoring, this paper examines the relationship between productivity and service offshoring and how it is different from material offshoring. In the process, we determine whether each offshoring translates to higher productivity. We also examine outsourcing versus FDI in service and material. The third area of focus is offshoring destinations and their relationship to productivity. In particular, we categorize destinations into developed countries (DCs) and less developed countries (LDCs) and study whether destinations matter in respect to productivity.

Suggested Citation

Lee, Hongshik, How, What, and Where to Offshore: A Productivity Comparison at the Firm Level (June, 22 2011). SIBR, Available at SSRN: https://ssrn.com/abstract=1869589 or http://dx.doi.org/10.2139/ssrn.1869589

Hongshik Lee (Contact Author)

Korea Institute for International Economic Policy (KIEP) ( email )

[30147] Building C, Sejong National Research Compl
Seoul, 370
Korea, Republic of (South Korea)

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