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The impact of offshoring on productivity and innovation: Evidence from Swedish manufacturing firms

Christopher Baum (), Hans Lööf (), Andreas Stephan () and Ingrid Viklund-Ros
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Ingrid Viklund-Ros: CESIS, KTH Royal Institute of Technology

No 1014, Boston College Working Papers in Economics from Boston College Department of Economics

Abstract: This paper examines the impact of offshoring on total factor productivity (TFP) and innovation measured by patent applications. It applies instrumental variable and matching approaches on a panel of about 7,500 Swedish manufacturing firms over the period 2001--2014, and identifies offshoring-related intermediate imports by the United Nations Broad Economic Categories system. Accounting for selection and simultaneity bias, no causal impact on TFP can be established, while the estimated positive effect on innovation is found to be weakly significant.

Keywords: offshoring; patent; trademark; innovation; productivity; panel data (search for similar items in EconPapers)
JEL-codes: C23 F23 O33 O47 O52 (search for similar items in EconPapers)
Date: 2020-07-31, Revised 2021-04-19
New Economics Papers: this item is included in nep-cse, nep-eff, nep-ino and nep-int
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Forthcoming, Review of International Economics

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