Does Offshoring of Materials and Business Services Affect Employment? Evidence from a Small Open Economy

Bernhard Michel () and Francois Rycx ()
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Bernhard Michel: Federal Planning Bureau, Avenue des Arts 47-49,B-1000 Brussels, Belgium

No 09-10.RS, Working Papers DULBEA from Université libre de Bruxelles, Department of Applied Economics (DULBEA)

Abstract: The fear of massive job losses has prompted a fast-growing literature on offshoring and its impact on employment in advanced economies. This paper examines the situation for Belgium. It improves the offshoring intensity measure by computing a volume measure of the share of imported intermediates in output and it is among the first to address both materials and business services offshoring to high-wage and low-wage countries. Estimations of static and dynamic industry-level labour demand equations augmented by offshoring intensities do not reveal a significant impact of either materials or business services offshoring on total employment for Belgium between 1995 and 2003.

Keywords: Offshoring; imported intermediate inputs; supply and use tables; industry-level employment; labour demand equations; panel data. (search for similar items in EconPapers)
JEL-codes: F J (search for similar items in EconPapers)
Date: 2009-05
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Related works:
Working Paper: Does Offshoring of Materials and Business Services Affect Employment? Evidence from a Small Open Economy (2009)
Working Paper: Does Offshoring of Materials and Business Services Affect Employment? Evidence from a Small Open Economy (2009)
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