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Service off-shoring and productivity growth in the European economies

Cecilia Jona-Lasinio ()

Review of Economics and Institutions, 2015, vol. 6, issue 2

Abstract: We study the relation between service off-shoring and productivity growth in the manufacturing sector of a set of European economies in 1995-2005. We document that those countries resorting more to service off-shoring in 1995 experienced faster productivity growth in ICT/R&D intensive industries over the next decade. Our results show also that the productivity gap between more and less ICT/R&D intensive industries was relatively higher in those countries experimenting higher increases in service off-shoring intensity over the period. In both cases, ICT intensity is more relevant than R&D to explain the mechanism through which service off-shoring affects productivity growth. These findings are consistent with the enhancing productivity effects of the complementary relation between service off-shoring and ICT.

Keywords: service off-shoring; productivity growth; ICT (search for similar items in EconPapers)
JEL-codes: O4 O3 F23 (search for similar items in EconPapers)
Date: 2015
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Working Paper: Service Off-shoring and Productivity Growth in the European Economies (2012) Downloads
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