Determinants and Productivity Effects of Service Offshoring

Determinants and Productivity Effects of Service Offshoring PDF Author:
Publisher: GRIN Verlag
ISBN: 3346262146
Category : Business & Economics
Languages : en
Pages : 74

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Book Description
Master's Thesis from the year 2020 in the subject Economics - Other, grade: 1,0, University of Hagen (Wirtschaftswissenschaft), language: English, abstract: Economic theory suggests that offshoring creates productivity-enhancing effects but literature in this area has been rather limited for service offshoring until recently. Thus, the contribution at hand tries to provide an overview of why firms engage in service offshoring and examine how service offshoring affects productivity. The work is structured as follows: Section 2 first provides a definition of the related terms and narrows down the topic of the paper. Section 3 briefly discusses service offshoring as a new paradigm of trade in the US. It also addresses the types of offshored service jobs, the offshore locations as well as the current volume of service offshoring. Section 4 discusses the various determinants that facilitate service offshoring. Section 5 contains the core analysis of this paper with the goal of analyzing the productivity effects of service offshoring theoretically and empirically. First, a Heckscher-Ohlin model by Feenstra and Hanson (1996, 1997, 1999) will be introduced as one of the earliest models addressing offshoring and productivity. Then the "trade in tasks" model by Grossman and Rossi-Hansberg (2008) is presented to illustrate how service offshoring affects productivity. On an empirical level, the studies from Amiti and Wei (2009) and Schwörer (2013) will be discussed to address how service offshoring affects productivity specifically in the US and Europe. This will be followed by a comparison of the two empirical studies. Section 6 summarizes the work and adds some final remarks.

Determinants and Productivity Effects of Service Offshoring

Determinants and Productivity Effects of Service Offshoring PDF Author:
Publisher: GRIN Verlag
ISBN: 3346262146
Category : Business & Economics
Languages : en
Pages : 74

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Book Description
Master's Thesis from the year 2020 in the subject Economics - Other, grade: 1,0, University of Hagen (Wirtschaftswissenschaft), language: English, abstract: Economic theory suggests that offshoring creates productivity-enhancing effects but literature in this area has been rather limited for service offshoring until recently. Thus, the contribution at hand tries to provide an overview of why firms engage in service offshoring and examine how service offshoring affects productivity. The work is structured as follows: Section 2 first provides a definition of the related terms and narrows down the topic of the paper. Section 3 briefly discusses service offshoring as a new paradigm of trade in the US. It also addresses the types of offshored service jobs, the offshore locations as well as the current volume of service offshoring. Section 4 discusses the various determinants that facilitate service offshoring. Section 5 contains the core analysis of this paper with the goal of analyzing the productivity effects of service offshoring theoretically and empirically. First, a Heckscher-Ohlin model by Feenstra and Hanson (1996, 1997, 1999) will be introduced as one of the earliest models addressing offshoring and productivity. Then the "trade in tasks" model by Grossman and Rossi-Hansberg (2008) is presented to illustrate how service offshoring affects productivity. On an empirical level, the studies from Amiti and Wei (2009) and Schwörer (2013) will be discussed to address how service offshoring affects productivity specifically in the US and Europe. This will be followed by a comparison of the two empirical studies. Section 6 summarizes the work and adds some final remarks.

Service Offshoring, Productivity, and Employment

Service Offshoring, Productivity, and Employment PDF Author: Mary Amiti
Publisher: INTERNATIONAL MONETARY FUND
ISBN: 9781451862577
Category : Business & Economics
Languages : en
Pages : 0

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Book Description
This paper estimates the effects of offshoring on productivity in U.S. manufacturing industries between 1992 and 2000, using instrumental variables estimation to address the potential endogeneity of offshoring. It finds that service offshoring has a significant positive effect on productivity in the US, accounting for around 11 percent of productivity growth during this period. Offshoring material inputs also has a positive effect on productivity, but the magnitude is smaller accounting for approximately 5 percent of productivity growth. There is a small negative effect of less than half a percent on employment when industries are finely disaggregated (450 manufacturing industries). However, this affect disappears at more aggregate industry level of 96 industries indicating that there is sufficient growth in demand in other industries within these broadly defined classifications to offset any negative effects.

Services Offshoring and its Impact on the Labor Market

Services Offshoring and its Impact on the Labor Market PDF Author: Deborah Winkler
Publisher: Springer Science & Business Media
ISBN: 3790821993
Category : Business & Economics
Languages : en
Pages : 314

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Book Description
Services – from information technology to research to finance – are now as subject to international trade as goods have been for decades. What are the labor market consequences of the recent surge in services offshoring? While offshoring has traditionally been found to affect only less-skilled workers in industrialized countries, this study finds that services offshoring also has negative consequences for high-skilled workers. Focusing on the case of Germany, Deborah Winkler shows how services offshoring has grown, who is most affected and what policy makers can do. Winkler measures the impact of services offshoring on German productivity, employment, and employment structure. She provides a well-balanced synthesis of theoretical insights, detailed empirical analysis, and economic policy recommendations. Although her main focus is on the case of Germany, many insights are also applicable to other developed countries.

Offshoring

Offshoring PDF Author: Gorg Holger
Publisher: World Scientific Publishing Company
ISBN: 9789813239425
Category : Business & Economics
Languages : en
Pages : 400

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Book Description
This volume brings together research papers dealing with the causes and consequences of offshoring. The first part considers causes and motives of offshoring. Using firm level data for countries such as Ireland, France, and the UK, this book looks at issues such as the increasing availability of business services or the internet, and improvements in intellectual property rights protection as stimulants of offshoring. The second part then looks at the implications of offshoring for the firms involved. Based on firm level data for Ireland, Sweden, the UK and a number of Emerging Market Economies, the book also focuses on productivity effects of offshoring as well as the implications for innovation activities of firms, and for profitability. The implications for workers of offshoring are dealt with in the third part of the volume. Studies are based on individual level data for Germany, Denmark and the UK and look at implications for individual level wages, in particular considering the importance of skills and occupations.

Offshoring of Services

Offshoring of Services PDF Author: Sigurd R. Nilsen
Publisher: DIANE Publishing
ISBN: 9781422304945
Category : Business & Economics
Languages : en
Pages : 88

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Book Description
Much attention has focused on the offshoringÓ of services to lower-wage locations abroad. Offshoring generally refers to an org. purchase of goods or services from abroad that were previously produced domestically. Extensive public debate has arisen about both the potential benefits of services offshoring, such as lower consumer prices & higher U.S. productivity, as well as the potential costs, such as increased job displacement for selected U.S. workers. This report: provides an overview of experts' views on the potential impacts of services offshoring; describes the types of policies that have been proposed in response to offshoring; & highlights some key areas where add'l. research might help advance the debate about offshoring. Illus.

Determinants of the Mode of Offshoring of Services by Large US Corporations

Determinants of the Mode of Offshoring of Services by Large US Corporations PDF Author: Anand Pore
Publisher:
ISBN:
Category : Contracting out
Languages : en
Pages : 211

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Book Description
This study explores the effects of service characteristics, firm capabilities, strategic motives and concerns on mode of offshoring of services of large US corporations. Firms could offshore services through a wide spectrum of modes ranging from i) complete internalization (foreign subsidiary), to ii) complete externalization (arms length transactions), or iii) intermediate modes (such as licensing, joint venture etc). Although, factors such as cost savings, time savings, host country incentives, access to skilled resources and markets may motivate firms to engage in offshoring of services; concerns regarding security/privacy of data, intellectual property rights, host country political/economic uncertainty, cultural distance between the host country and the home country and lack of partners/vendors in the host country may discourage firms from either offshoring services completely or may limit the choice of offshoring modes available to the firm in the host country. Also, factors related to the service such as strategic importance of the service to the firm, customization needs of the customer and use of proprietary technology in the production/performance of the service and firm capabilities may play a part in deciding the mode of offshoring. All these factors related to the service characteristics, firm capabilities, motives and concerns are used to build a model to explain the modal choice of offshoring of services of large US corporations. Survey data, regarding the above mentioned factors for firms involved in offshoring of services, was collected to empirically test the model. The model was tested using multinomial, binomial and ordinal regression. Results of the study support the influence of the strategic importance of the service, proprietary technology and cost savings motive on the mode of offshoring. In addition, firm's concerns regarding security/privacy of data, host country political/economic uncertainty, and lack of partners/vendors in the host country were also found to influence the offshoring mode. But, firm's motives of time savings, accessing host country skills and market and taking advantage of host country incentives were not found to influence the offshoring mode. Moreover, firm capabilities and firm's concerns over intellectual property protection and cultural distance were also not found to influence the mode of offshoring.

Service Offshoring and Productivity

Service Offshoring and Productivity PDF Author: Mary Amiti
Publisher:
ISBN:
Category : Contracting out
Languages : en
Pages : 37

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Book Description
The practice of sourcing service inputs from overseas suppliers has been growing in response to new technologies that have made it possible to trade in some business and computing services that were previously considered non-tradable. This paper estimates the effects of offshoring on productivity in US manufacturing industries between 1992 and 2000. It finds that service offshoring has a significant positive effect on productivity in the US, accounting for around 10 percent of labor productivity growth during this period. Offshoring material inputs also has a positive effect on productivity, but the magnitude is smaller accounting for approximately 5 percent of productivity growth

Service Offshoring, Productivity and Employment

Service Offshoring, Productivity and Employment PDF Author: Mary Amiti
Publisher:
ISBN:
Category : Contracting out
Languages : en
Pages : 0

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Book Description
This paper estimates the effects of offshoring on productivity in U.S. manufacturing industries between 1992 and 2000, using instrumental variables estimation to address the potential endogeneity of offshoring. It finds that service offshoring has a significant positive effect on productivity in the US, accounting for around 11 percent of productivity growth during this period. Offshoring material inputs also has a positive effect on productivity, but the magnitude is smaller accounting for approximately 5 percent of productivity growth. There is a small negative effect of less than half a percent on employment when industries are finely disaggregated (450 manufacturing industries). However, this affect disappears at more aggregate industry level of 96 industries indicating that there is sufficient growth in demand in other industries within these broadly defined classifications to offset any negative effects.

Outsourcing and Offshoring of Professional Services: Business Optimization in a Global Economy

Outsourcing and Offshoring of Professional Services: Business Optimization in a Global Economy PDF Author: Gupta, Amar
Publisher: IGI Global
ISBN: 1599049732
Category : Business & Economics
Languages : en
Pages : 440

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Book Description
"This book discusses the considerations and implications surrounding the outsourcing and offshoring of professional services, such as software development computer-aided design, and healthcare, from multiple global perspectives. This book, offers industry professionals, policymakers, students, and educators with a balance between a broad overview and detailed analysis of offshore outsourcing, would make an invaluable addition to any reference library"--Provided by publisher.

Quantitative Analysis Of Newly Evolving Patterns Of International Trade: Fragmentation, Offshoring Of Activities, And Vertical Intra-industry Trade

Quantitative Analysis Of Newly Evolving Patterns Of International Trade: Fragmentation, Offshoring Of Activities, And Vertical Intra-industry Trade PDF Author: Robert M Stern
Publisher: World Scientific
ISBN: 9814452173
Category : Business & Economics
Languages : en
Pages : 531

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Book Description
Quantitative Analysis of Newly Evolving Patterns of International Trade offers a variety of perspectives on new forms and developments of international trade and related activities for Japan, the United States, China, and some other important trading countries, to develop new methods and data for measuring the factor contents of emerging new modes of international trade. Such methods and data are crucially important for evaluating impacts of the new modes on factor markets in the United States, Japan, and other major trading countries, and also for forecasting the future development of world trade and foreign direct investment (FDI), evaluating welfare gains from trade, estimating impacts of free trade agreements, and designing effective trade and FDI policies.