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Off-shoring and productivity growth in the Italian manufacturing industries

Francesco Daveri and Cecilia Jona-Lasinio

No 2007-EP08, Economics Department Working Papers from Department of Economics, Parma University (Italy)

Abstract: We employ input-output tables to study the relation between off-shoring and productivity growth in the Italian manufacturing industries in 1995-2003. Our results indicate that not all types of off-shoring are positively related to productivity growth. In particular, the international outsourcing of intermediates within the same industry (“narrow off-shoring”) is beneficial for productivity growth, while the off-shoring of services is not. We also find that the way in which off-shoring is measured may matter considerably. The positive relation between off-shoring of intermediates and productivity growth disappears when our direct measure of off-shoring is replaced with the Feenstra-Hanson measure employed in other studies.

Keywords: International trade, Productivity growth; offshoring; Italian economy (search for similar items in EconPapers)
JEL-codes: F16 F23 O4 (search for similar items in EconPapers)
Pages: 35
Date: 2007
New Economics Papers: this item is included in nep-bec and nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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