How, What, and Where to Offshore: A Productivity Comparison at the Firm Level
Posted: 23 Jun 2011
Date Written: June, 22 2011
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.
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