Services Offshoring and Its Impact on Productivity and Employment: Evidence from Germany, 1995-2006

Economists have recently recognised services offshoring as an important influence on domestic labour market outcomes. Services are of particular interest since their significance has grown in terms of both quantity and quality. Only one and a half decades ago, most services were considered non-trada...

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Main Author: Winkler, Deborah
Format: Journal Article
Language:EN
Published: 2012
Subjects:
Online Access:http://hdl.handle.net/10986/5022
id okr-10986-5022
recordtype oai_dc
spelling okr-10986-50222021-04-23T14:02:20Z Services Offshoring and Its Impact on Productivity and Employment: Evidence from Germany, 1995-2006 Winkler, Deborah Country and Industry Studies of Trade F140 Labor Demand J230 Contracting Out Joint Ventures Technology Licensing L240 Industry Studies: Services: General L800 Economists have recently recognised services offshoring as an important influence on domestic labour market outcomes. Services are of particular interest since their significance has grown in terms of both quantity and quality. Only one and a half decades ago, most services were considered non-tradable, but the emergence and development of new information and communication technologies has made many services internationally tradable. The liberalisation of international trade in services trade has further accelerated the volume of services trade. Our econometric estimations focus on services offshoring by German manufacturing sectors. We use revised input-output data from 1995 to 2006. We first estimate the impact of services offshoring on labour productivity. We then measure the effects of services offshoring on labour demand. The results show that services offshoring increased sectoral labour productivity, but reduced German manufacturing employment. The overall results suggest that labour demand decreased over 1995-2006, because labour-reducing productivity and substitution effects dominated labour-augmenting scale effects from services offshoring. 2012-03-30T07:30:53Z 2012-03-30T07:30:53Z 2010 Journal Article World Economy 03785920 http://hdl.handle.net/10986/5022 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Germany
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language EN
topic Country and Industry Studies of Trade F140
Labor Demand J230
Contracting Out
Joint Ventures
Technology Licensing L240
Industry Studies: Services: General L800
spellingShingle Country and Industry Studies of Trade F140
Labor Demand J230
Contracting Out
Joint Ventures
Technology Licensing L240
Industry Studies: Services: General L800
Winkler, Deborah
Services Offshoring and Its Impact on Productivity and Employment: Evidence from Germany, 1995-2006
geographic_facet Germany
relation http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description Economists have recently recognised services offshoring as an important influence on domestic labour market outcomes. Services are of particular interest since their significance has grown in terms of both quantity and quality. Only one and a half decades ago, most services were considered non-tradable, but the emergence and development of new information and communication technologies has made many services internationally tradable. The liberalisation of international trade in services trade has further accelerated the volume of services trade. Our econometric estimations focus on services offshoring by German manufacturing sectors. We use revised input-output data from 1995 to 2006. We first estimate the impact of services offshoring on labour productivity. We then measure the effects of services offshoring on labour demand. The results show that services offshoring increased sectoral labour productivity, but reduced German manufacturing employment. The overall results suggest that labour demand decreased over 1995-2006, because labour-reducing productivity and substitution effects dominated labour-augmenting scale effects from services offshoring.
format Journal Article
author Winkler, Deborah
author_facet Winkler, Deborah
author_sort Winkler, Deborah
title Services Offshoring and Its Impact on Productivity and Employment: Evidence from Germany, 1995-2006
title_short Services Offshoring and Its Impact on Productivity and Employment: Evidence from Germany, 1995-2006
title_full Services Offshoring and Its Impact on Productivity and Employment: Evidence from Germany, 1995-2006
title_fullStr Services Offshoring and Its Impact on Productivity and Employment: Evidence from Germany, 1995-2006
title_full_unstemmed Services Offshoring and Its Impact on Productivity and Employment: Evidence from Germany, 1995-2006
title_sort services offshoring and its impact on productivity and employment: evidence from germany, 1995-2006
publishDate 2012
url http://hdl.handle.net/10986/5022
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