Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2007-11-23
Number: 07-089/3
Author-Name: Frank A.G. den Butter
Author-Email: fbutter@feweb.vu.nl
Author-Workplace-Name: VU University Amsterdam
Author-Name: Christiaan Pattipeilohy
Author-Workplace-Name: VU University Amsterdam, and Frisch Center, Oslo
Title: Productivity Gains from Offshoring: an Empirical Analysis for the Netherlands
Abstract: A major question in the globalization debate is whether outsourcing and offshoring activities are beneficial to the home country. This paper investigates the effects on productivity and trade from the perspective of transaction costs, using a recent theory on trade in tasks. A production function is estimated for the Netherlands for the period 1972-2001. It suggests that the effect of offshoring manufacturing and services on total factor productivity (TFP) is positive and larger than the effect of R&D on productivity.
Classification-JEL: F10; F43; O47
Keywords: globalization; offshoring; foreign direct investments; transaction costs; total factor productivity
File-Url: https://papers.tinbergen.nl/07089.pdf
File-Format: application/pdf
File-Size: 178965 bytes
Handle: RePEc:tin:wpaper:20070089