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Statistics to Measure Offshoring and its Impact

Robert Feenstra ()

No 23067, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We identify “first generation” statistics to measure offshoring as the share of imported intermediate inputs in costs, along with O*NET data to measure the tradability of tasks. These data were used to measure the shifts in relative labor demand and relative wages due to offshoring. A limitation of these statistics is that they cannot be used to measure the impact on real wages, and for that purpose, we need price-based measures of offshoring. More recently, “second generation” statistics have arisen from global input-output tables. These measures include the foreign value-added in exports, or its counterpart, the domestic value-added in exports. We illustrate the foreign value-added component in the surge of Chinese exports following its WTO entry in 2001. We argue that such second-generation statistics should also be supplemented by price-based measure of offshoring, and we propose one simple measure that extends the effective rate of protection on imports to apply to exported goods.

JEL-codes: F12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int
Date: 2017-01
Note: ITI
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