Dynamic Gains from U.S. Services Offshoring: A Critical View

William Milberg, Melissa Mahoney, Markus Schneider and Rudi Arnim

Chapter Chapter Five in Global Capitalism Unbound, 2007, pp 77-93 from Palgrave Macmillan

Abstract: Abstract The explosion over the past ten years of U.S. imports of information technology (IT) and IT-enabled services has been a clear boon to the economies of India, China, Singapore, the Philippines, and a number of other developing countries. But there is a considerable debate about the welfare effects of offshoring for the United States. International trade economists generally agree that in the short run the surge in offshoring has brought efficiency gains, but it has not been beneficial to U.S. welfare overall because of inadequate assistance to displaced workers. Accordingly, most economists support an expansion of Trade Adjustment Assistance (TAA)—which currently only covers manufacturing—and a wage insurance plan funded by a tax on employers.

Keywords: Foreign Direct Investment; Cash Holding; Domestic Investment; Dividend Payment; Profit Share (search for similar items in EconPapers)
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-60884-9_5

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DOI: 10.1057/9780230608849_5

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