Regional production networks, service offshoring, and productivity in East Asia
Moonsung Kang,
Hyuk Hwang Kim,
Hongshik Lee and
Joonhyung Lee
Japan and the World Economy, 2010, vol. 22, issue 3, 206-216
Abstract:
Using the Asian International Input-Output Table (1990, 1995, and 2000), this paper explores regional production networks and offshoring of material and service inputs in East Asia. In doing so, offshoring is measured directly from the Table, which has not been used in previous literature regarding this issue. It turns out that East Asian countries source significant shares of inputs within East Asia. In addition to material offshoring, service offshoring in East Asia has become increasingly common in the era of globalization. We also evaluate the effects of this fast growing offshoring on productivity. Our econometric results demonstrate that offshoring exerts a significant and positive impact on total factor productivity in East Asia. Service offshoring, in particular, performs a more significant role than material offshoring.
Keywords: Regional; production; networks; Service; offshoring; Productivity (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (5)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:japwor:v:22:y:2010:i:3:p:206-216
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