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A Ricardo-Viner Approach to Service Offshoring

Daniel Horgos

No 290, Development Working Papers from Centro Studi Luca d'Agliano, University of Milano

Abstract: Empirical contributions on service offshoring show less pronounced labor market implications than with material offshoring. Since no formal model exists investigating service offshoring in particular, empirical examinations are not based on properly defined hypothesis. This contribution formalizes service offshoring within a Ricardo-Viner specific factors model. As service offshoring is assumed to expand the range of possible offshoring scenarios,results differ from those of material offshoring. The different scenarios have opposite implications and sum up to marginal effects in the aggregate. This theoretical contribution thus is capable of explaining empirical findings so far and provides clear testable hypotheses for future research.

Keywords: service offshoring; trade in services; specific factors model (search for similar items in EconPapers)
JEL-codes: F16 F40 (search for similar items in EconPapers)
Pages: 17
Date: 2010-04-30, Revised 2010-04-30
New Economics Papers: this item is included in nep-int
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