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Author:
Publisher: DIANE Publishing
ISBN: 1437941621
Category :
Languages : en
Pages : 94
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Book Description
Author:
Publisher: DIANE Publishing
ISBN: 1437941621
Category :
Languages : en
Pages : 94
Get Book Here
Book Description
Author: Susan N. Houseman
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
The rapid growth of offshoring has sparked a contentious debate over its impact on the U.S. manufacturing sector, which has recorded steep employment declines yet strong output growth -- a fact reconciled by the notable gains in manufacturing productivity. We maintain, however, that the dramatic acceleration of imports from developing countries has imparted a significant bias to the official statistics. In particular, the price declines associated with the shift to low-cost foreign suppliers are generally not captured in input cost and import price indexes. Although cost savings are a primary driver of the shift in sourcing to foreign suppliers, the price declines associated with offshoring are not systematically observed; this is the essence of the measurement problem. To gauge the magnitude of these discounts, we draw on a variety of evidence from import price microdata from the Bureau of Labor Statistics, industry case studies, and the business press. To assess the implications of offshoring bias for manufacturing productivity and value added, we implement the bias correction developed by Diewert and Nakamura (2009) to the input price index in a growth accounting framework, using a variety of assumptions about the magnitude of the discounts from offshoring. We find that from 1997 to 2007 average annual multifactor productivity growth in manufacturing was overstated by 0.1 to 0.2 percentage point and real value added growth by 0.2 to 0.5 percentage point. Furthermore, although the bias from offshoring represents a relatively small share of real value added growth in the computer and electronic products industry, it may have accounted for a fifth to a half of the growth in real value added in the rest of manufacturing.
Author: Susan N. Houseman
Publisher:
ISBN:
Category : Labor productivity
Languages : en
Pages : 29
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Book Description
The rapid growth of offshoring has sparked a contentious debate over its impact on the U.S. manufacturing sector, which has recorded steep employment declines yet strong output growth -- a fact reconciled by the notable gains in manufacturing productivity. We maintain, however, that the dramatic acceleration of imports from developing countries has imparted a significant bias to the official statistics. In particular, the price declines associated with the shift to low-cost foreign suppliers generally are not captured in input cost and import price indexes. To assess the implications of offshoring bias for manufacturing productivity and value added, we implement the bias correction developed by Diewert and Nakamura (2009) to the input price index in a growth accounting framework, using a variety of assumptions about the magnitude of the discounts from offshoring. We find that from 1997 to 2007 average annual multifactor productivity growth in manufacturing was overstated by 0.1 to 0.2 percentage point and real value added growth by 0.2 to 0.5 percentage point. Furthermore, although the bias from offshoring represents a relatively small share of real value added growth in the computer and electronic products industry, it may have accounted for a fifth to a half of the growth in real value added in the rest of manufacturing.
Author:
Publisher:
ISBN:
Category :
Languages : en
Pages : 45
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Book Description
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.
Author: Jonathan S. Krekl
Publisher:
ISBN: 9781608760640
Category : Labor market
Languages : en
Pages : 0
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Book Description
Offshoring, also known as offshore outsourcing, is the term now being used to describe a practice among companies located in the United States of contracting with businesses beyond U.S. borders to perform services that would otherwise have been provided by in-house employees in white-collar occupations. The term is equally applicable to U.S. firms offshoring the jobs of blue-collar workers on textile and auto assembly lines, for example, which has been taking place for decades. The extension of offshoring from U.S. manufacturers to service providers has heightened public policy concerns about the extent of job loss and foregone employment opportunities among U.S. workers. This concern is especially pertinent to policymakers because of a national unemployment rate persistently exceeding 9 per cent despite the end of the latest recession. This book discusses the impacts of offshoring on jobs and small U.S. manufacturers.
Author: Alexandre Fernand Sauveur Bartolin
Publisher:
ISBN:
Category :
Languages : en
Pages : 216
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Book Description
(Cont.) This thesis explores the U.S. manufacturing sector by looking at employment and trade data at a macro-level. The terms offshoring and outsourcing will be defined and the main international trade theories discussed. The thesis develops a model to show that offshoring was only a part of the reason for the shrinkage in manufacturing employment between 1997 and 2003; the others being a drop in demand and gains in productivity. After introducing several case studies of companies in the apparel sector and the semi-conductor industry, a framework for understanding the offshoring decision process is developed. This framework defines the conditions needed to make manufacturing in U.S. competitive with production abroad. Finally through a detailed study of the expansion of the Chinese economy and the Wal-Mart phenomenon, the thesis presents the next challenges of the U.S. manufacturing sector: the birth of new competitors for high value added products and the rising constraints on price due to the pressure of retailers on manufacturers.
Author: Lionel Fontagné
Publisher: Oxford University Press
ISBN: 019877916X
Category : Business & Economics
Languages : en
Pages : 383
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Book Description
An economic analysis of de-industrialization that considers the ongoing transformation of the industrial economies and the consequences for economic policy.
Author: Robert C. Feenstra
Publisher:
ISBN:
Category : Economics
Languages : en
Pages : 22
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Book Description
When materials offshoring is measured by estimating imported intermediate inputs, a common assumption used is that an industry's imports of each input, relative to its total demand, is the same as the economy-wide imports relative to total demand: this is the so-called "import comparability" or "proportionality" assumption. A report to the National Research Council identified this assumption as being a significant limitation of current data collection and analysis. In this note we move beyond this assumption to obtain a direct measure of imported materials by industry for the United States in 1997. At the 3-digit I-O industry level, there is a correlation of 0.68 between the offshoring shares made with and without the proportionality assumption, and a higher correlation of 0.87 when the shares are value weighted. While most value-weighted industry have differences below 50 percentage points in the two estimates, there is significant number of cases that differ by 10 percentage points or more.
Author: Susan N. Houseman
Publisher:
ISBN:
Category :
Languages : en
Pages : 25
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Book Description
Because of gaps in existing surveys and methodological problems with the computation of productivity measures, outsourcing and offshoring result in an overstatement of labor productivity and multifactor productivity growth in manufacturing. Although it is impossible to fully characterize the size of the bias, I present several pieces of evidence indicating that it is large. Any overstatement of productivity in manufacturing, which has been a driver of productivity in the American economy, may have important implications for aggregate productivity measurement, particularly to the extent that the bias arises from offshoring activities. These findings may help explain why recent high growth in labor productivity has not been associated with widespread wage gains but rather with an increase in capital's share of GDP: labor productivity growth in manufacturing, and most likely in the aggregate economy, are overstated, and the very factors that have led to the overstatement - outsourcing and offshoring - depress wages. The effects of outsourcing and offshoring on manufacturing and aggregate productivity measurement, I argue, warrant further study, and productivity measures should be interpreted with caution.
