Offshoring and Growth with Two Factors

Andreas Hoefele

Discussion Papers from University of Nottingham, GEP

Abstract: Offshoring has received a lot of attention lately. However, the debate is largely confined to the static effects. This paper shows that there are important implications of offshoring on the growth rate in an economy. In this paper I show that offshoring a larger share of unskilled workers tasks, has an ambiguous effect on the growth rate of the economy. Recent work on offshoring emphasizes the cost-savings effect due to offshoring. However, I highlight the factor markets as an important channel by showing that the condition under which offshoring has a positive or negative impact on the growth rate in the economy is linked to the factor markets.

Keywords: Endogenous Growth; Offshoring; Tasks Trade (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.nottingham.ac.uk/gep/documents/papers/2010/10-16.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:not:notgep:10/16

Access Statistics for this paper

More papers in Discussion Papers from University of Nottingham, GEP School of Economics University of Nottingham University Park Nottingham NG7 2RD. Contact information at EDIRC.
Bibliographic data for series maintained by Hilary Hughes ().