Offshoring and Specialisation: Are Industries Moving Abroad?

Ioannis Bournakis, Michela Vecchi and Francesco Venturini ()

No 98/2011, Quaderni del Dipartimento di Economia, Finanza e Statistica from Università di Perugia, Dipartimento Economia

Abstract: This paper investigates the impact of off-shoring on specialisation via its effect on national endowments and productivity. We use different definition of off-shoring to properly capture international fragmentation of production, while controlling for countries? stocks of R&D and ICT capital. Using industry data for the US, Japan and Europe we show that while offshoring of materials can benefit a wide range of industries, service and intra-industry offshoring can decrease specialisation in high-tech industry, both within manufacturing and services. This effect can be compensated with increasing R&D investments.

Pages: 44 pages
Date: 2011-12-01
New Economics Papers: this item is included in nep-eff and nep-int
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Citations: View citations in EconPapers (3)

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