Task dependence of U.S. service offshoring patterns

Julia Püschel

No 2012/15, Discussion Papers from Free University Berlin, School of Business & Economics

Abstract: This work offers new insights into the determinants of service offshoring across countries and across service industries. Combining different data sources over the 2006-2009 period, I find that certain country characteristics affect offshoring costs for all services, while the effects of other characteristics depend on the coordination requirements of the respective service industry. The results from a zero-inflated Poisson pseudomaximum likelihood estimation indicate that the effects of a membership in NAFTA, and a common colonial past on service offshoring patterns depend on the task content of the services. These results are robust to the control for unobservable country-level heterogeneity. The quality of legal institutions, a common legal origin, geographic distance, and time zone differences influence offshoring patterns identically across all service industries.

Keywords: Offshoring; Services; Tasks; Coordination; Poisson pseudo-maximum likelihood (search for similar items in EconPapers)
JEL-codes: F14 F20 F23 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:fubsbe:201215

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