India's specialisation in IT exports: Offshoring can't defy gravity

Thomas Meyer

MPRA Paper from University Library of Munich, Germany

Abstract: India’s actual export specialisation in IT services is unrivalled by any comparable country and it is evidence of a strong comparative advantage. This paper finds that India owes its IT specialisation in part to its reliance on offshoring - driven by the supply of well-educated, English-speaking and affordable workers - but also to a shift away from high-tech manufacturing exports. Going forward, India's specialisation on IT and other high-tech exports may decline as rising wages erode one of the reasons for offshoring.

Keywords: International trade; comparative advantage; offshoring; India (search for similar items in EconPapers)
JEL-codes: F1 F47 O1 O33 (search for similar items in EconPapers)
Date: 2007-11-15
New Economics Papers: this item is included in nep-cwa and nep-int
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Citations: View citations in EconPapers (5)

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