Offshoring and specialisation : are industries moving abroad?

Bournakis, Ioannis, Vecchi, Michela and Venturini, Francesco (2011) Offshoring and specialisation : are industries moving abroad? (Working Paper) Perugia : Università di Perugia, Dipartimento Economia. (Quaderni del Dipartimento di Economia, Finanza e Statistica, no. 98/2011)


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.

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