Impact of International Outsourcing on Domestic Wage of Singapore Manufacturing Sector

Sandip Chakraborty, Ram Kumar Kakani and Bernadette C. Canasa

International Journal of Economics and Finance, 2017, vol. 9, issue 6, 82-97

Abstract: This study focuses on measuring the extent of international outsourcing across Singapore manufacturing sector and the impact on domestic wages of workers. Based on the framework of Feenstra and Hanson (1999), this study measured the narrow and wide outsourcing from the overseas intermediate imports. In estimating the impact of international outsourcing on wage, this study reviews the model developed by Geishecker and G?rg (2008) and modifies the same by incorporating the parametric stability approach of Hamilton¡¯s (1989) Markov Switching model. Results after incorporating the nonlinearity, indicates that outsourcing dynamics can be better understood through modified framework developed.

Keywords: international trade; outsourcing; Singapore; manufacturing; domestic wages; switching regression models (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:ibn:ijefaa:v:9:y:2017:i:6:p:82-97

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