Offshoring to High and Low Income Countries and the Labour Demand. Evidence from Italian Firms

Alessia Lo Turco and Daniela Maggioni

No 350, Working Papers from Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali

Abstract: Making use of an original data set we investigate the effects of imports of intermediates from high and low income countries on the conditional labour demand of a panel of Italian manufacturing firms. We estimate a dynamic panel data model by means of System GMM allowing for the endogeneity of our right hand side regressors, especially our offshoring measures. Our results bear a negative offshoring effect which is attributable exclusively to imports of intermediates from low income trading partners and mainly concerns firms operating in Traditional sectors. No statistically significant effect is estimated for imports from high income countries. These findings are robust to the different measures of offshoring and to the inclusion of further controls.

Keywords: dynamic panel data model; employment; offshoring (search for similar items in EconPapers)
JEL-codes: F14 F16 J23 L23 (search for similar items in EconPapers)
Pages: 38
Date: 2010-11
New Economics Papers: this item is included in nep-eur and nep-int
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Citations: View citations in EconPapers (11)

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Related works:
Journal Article: Offshoring to High and Low Income Countries and the Labor Demand. Evidence from Italian Firms (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:anc:wpaper:350

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