Most empirical studies of the impact of outsourcing on firms look at industrialised countries. However, outsourcing is also common in emerging economies, and firms in middle-income countries split up their production processes similarly to firms in developed countries (see figures in Miroudot et al. (2009) on trade in intermediates).
Offshoring and its effects on innovation in emerging economies
Ursula Fritsch, Holger Görg, 23 September 2013
Does offshoring hurt domestic innovation activities?
Bernhard Dachs, Bernd Ebersberger, Steffen Kinkel, Oliver Som, 7 September 2013
Offshoring of production activities has been a topic of economic policy debates for at least the last decade. A central issue in these debates are the economic effects of offshoring on firms in the home country.
Being in a global value chain: Hell or heaven?
Antonio Accetturo, Anna Giunta, Salvatore Rossi, 15 December 2012
The recent literature on global value chains has shown that the production of every good (from computers to retail trade services) now consists of a series of separate tasks (unbundling), each of which can be located outside the boundaries of the 'final' firm (Blinder 2006).
Offshoring and middle-income workers in the US
Lindsay Oldenski, 16 October 2012
As the US presidential election approaches, both candidates have been focusing on the state of the middle class. In the first presidential debate, Mitt Romney claimed: "the people who are having the hard time right now are middle income Americans. Under the president's policies, middle income Americans have been buried".
Effects of offshoring on home employment and skill upgrading
Yasuyuki Todo, 15 July 2012
How offshoring affects the home economy, particularly home employment and inequality, has been a hot issue in policy circles in many developed countries. Theoretically, the employment and wage effects of offshoring can go either way, depending on how offshoring affects domestic productivity and technology (Baldwin 2010).
Offshoring of high-skilled workers is not a zero-sum game
Rachel Griffith, Helen Miller, Laura Abramovsky, 15 March 2012
It has been well documented that US and European multinationals have expanded the amount of high-tech investment and innovative activities carried out offshore (OECD 2008). There is evidence that firms may offshore innovation activities not only to adapt products to local conditions but also to develop state-of-the-art technology.
Services trade, the IT revolution, and occupational tasks
Giordano Mion, Andrea Ariu, 25 February 2012
Services offshoring increases wage inequality
Holger Görg, Ingo Geishecker, Christiane Krieger-Boden, 24 December 2011
Offshoring from industrialised countries always evokes hot debate in public and academic circles. Worries concern a loss of employment opportunities in unskilled jobs at one point, and in high-skilled jobs at another. Other worries concern the suspected devaluation of unskilled labour.
When offshoring backfires
Xiaole Wu, Fuqiang Zhang, 5 November 2011
While politicians argue strategies to create jobs in the faltering global economy, the debate around offshoring has intensified. Once considered a clear competitive advantage in the fast-changing global market, manufacturers rushed to replace domestic labour forces with lower-cost workers in emerging markets.
Geography and offshoring to China
Alyson C Ma, Ari Van Assche, 18 May 2011
Anecdotal evidence is rife with tales of multinational firms that have offshored their production to China, stoking fears that it is leading to a hollowing-out of manufacturing around the world.
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