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Service Off-shoring and Productivity Growth in the European Economies

Cecilia Jona-Lasinio ()

No 1296, Working Papers LuissLab from Dipartimento di Economia e Finanza, LUISS Guido Carli

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: 2012
New Economics Papers: this item is included in nep-eff
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Journal Article: Service off-shoring and productivity growth in the European economies (2015) Downloads
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