Offshoring and labor markets in developing countries

Arnab Basu and Nancy Chau

IZA World of Labor, 2022, No 499, 499

Abstract: Developing countries are often seen as unquestionable beneficiaries in the phenomenal rise of global value chains in international trade. Offshoring—the cross-border trade in intermediate goods and services which facilitate country-level specialization in subsets of production tasks—enables an early start in global trade integration even when the requisite technology and knowhow for cost-effective production from scratch to finish are not yet acquired. A growing economics literature suggests a more nuanced view, however. Policymakers should be mindful of issues related to inequality across firms and wages, labor standards, and effects of trade policy.

Keywords: offshoring; globalization; labor markets in developing countries (search for similar items in EconPapers)
JEL-codes: F6 F63 O1 (search for similar items in EconPapers)
Date: 2022
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