The Effects of Offshoring to China: Reallocation, Employment and Productivity in Taiwan

Nigel L. Driffield () and (Michelle) Chiang, P.C.

International Journal of the Economics of Business, 2009, vol. 16, issue 1, pages 19-38

Abstract: We examine the extent to which outward FDI from Taiwan to mainland China has contributed to the rising unemployment rate in Taiwan. Further, it examines whether outward FDI has contributed to productivity growth in Taiwan, and the importance of linkages between sectors in determining these effects. We provide strong evidence that Taiwanese firms have increased their investments in China, and that this has lead to a reduction in employment in such sectors at home. Further, we show that these effects are also translated up the supply chain, such that outward FDI also leads to a reduction in employment upstream in the supply chain.

Keywords: FDI; Offshoring; Productivity (search for similar items in EconPapers)
Date: 2009

Downloads: (external link)
http://www.informaworld.com/openurl?genre=article& ... 40C6AD35DC6213A474B5 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:taf:ijecbs:v:16:y:2009:i:1:p:19-38

Ordering information: This journal article can be ordered from
http://www.tandf.co.uk/journals/subscription.html

Access Statistics for this article

International Journal of the Economics of Business is edited by Eleanor Morgan and H.E. Frech

More articles in International Journal of the Economics of Business from Taylor and Francis Journals
Series data maintained by Christopher F. Baum ().