Service Offshoring, Productivity, and Employment: Evidence from the United States
IMF Working Papers, December 1, 2005
Source details
- Canonical URL
- Service Offshoring, Productivity, and Employment: Evidence from the United States
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Bibliographic details
- Authors: Mary Amiti, Shang-Jin Wei
- Published: December 1, 2005
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451862577.001
Authors and publication
- By Mary Amiti, Shang-Jin Wei
- December 1, 2005
- Working Paper No. 2005/238; Issue: 238; Volume: 2005; Pages: 39
- DOI: https://doi.org/10.5089/9781451862577.001
- ISBN: 9781451862577
- ISSN: 1018-5941
Research question and methodology
- Objective: Estimate the effects of offshoring on productivity in U.S. manufacturing industries between 1992 and 2000.
- Estimation approach: Instrumental variables estimation to address the potential endogeneity of offshoring.
Key findings on productivity
- Service offshoring has a significant positive effect on productivity in the US.
- Accounts for around 11 percent of productivity growth during this period.
- Offshoring material inputs also has a positive effect on productivity.
- Accounts for approximately 5 percent of productivity growth.
Key findings on employment
- When industries are finely disaggregated (450 manufacturing industries):
- There is a small negative effect on employment of less than half a percent.
- At a more aggregate industry level (96 industries):
- The negative employment effect disappears.
- Interpretation: sufficient growth in demand in other industries within broadly defined classifications offsets any negative effects.
Subject tags and keywords (as provided)
- Subject: Employment, Imports, Labor productivity, Productivity, Total factor productivity
- Keywords: dependent variable, least squares, service offshoring, WP
Source: IMF Working Paper "Service Offshoring, Productivity, and Employment: Evidence from the United States" (2005/238).