Productivity Gains from Offshoring: an Empirical Analysis for the Netherlands

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Tinbergen Institute Discussion Paper ; No. 07-089/3

Classification and Topics

• Classification: Wirtschaft ; Trade: General ; Economic Growth of Open Economies ; Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
• Subject: globalization ; offshoring ; foreign direct investments ; transaction costs ; total factor productivity ; Globalisierung ; Auslandsverlagerung ; Auslandsinvestition ; Transaktionskosten ; Produktivität ; Niederlande

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): den Butter, Frank A.G. ; Pattipeilohy, Christiaan
• Event: Veröffentlichung
• (who): Tinbergen Institute
• (where): Amsterdam and Rotterdam
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/86637
• Last update: 10.03.2025, 11:41 AM CET