Off-shoring, specialization and R&D*

Ioannis Bournakis, Michela Vecchi and Francesco Venturini ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper investigates whether off-shoring promotes technological specialization by reallocating resources towards high-tech industries and/or stimulating within industry R&D. Using data for the US, Japan and Europe, our results show that material off-shoring promotes high-tech specialization through input reallocation between sectors, while service off-shoring favours technologically advanced production by increasing within-industry productivity, mainly via its positive impact on R&D. Conversely, we find that the increasing fragmentation of core production tasks, captured by narrow off-shoring, has adverse effects on technological specialisation, which suggests that this type of off-shoring is mainly pursued for cost-reduction motives.

Keywords: High-tech specialization; off-shoring; productivity; R&D; OECD industries (search for similar items in EconPapers)
JEL-codes: F14 F6 L16 O30 (search for similar items in EconPapers)
Date: 2015-12-15
New Economics Papers: this item is included in nep-cse, nep-eff, nep-ino, nep-sbm and nep-tid
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https://mpra.ub.uni-muenchen.de/68382/3/MPRA_paper_68382.pdf original version (application/pdf)

Related works:
Journal Article: Off‐Shoring, Specialization and R&D (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:68382

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