Economic theory suggests that offshoring creates productivity-enhancing effects but literature in this area has been rather limited for service offshoring until recently. Thus, the contribution at hand tries to provide an overview of why firms engage in service offshoring and examine how service offshoring affects productivity. The work is structured as follows: Section 2 first provides a definition of the related terms and narrows down the topic of the paper. Section 3 briefly discusses service offshoring as a new paradigm of trade in the US. It also addresses the types of offshored service jobs, the offshore locations as well as the current volume of service offshoring. Section 4 discusses the various determinants that facilitate service offshoring. Section 5 contains the core analysis of this paper with the goal of analyzing the productivity effects of service offshoring theoretically and empirically.
First, a Heckscher-Ohlin model by Feenstra and Hanson (1996, 1997, 1999) will be introduced as one of the earliest models addressing offshoring and productivity. Then the "trade in tasks" model by Grossman and Rossi-Hansberg (2008) is presented to illustrate how service offshoring affects productivity. On an empirical level, the studies from Amiti and Wei (2009) and Schwörer (2013) will be discussed to address how service offshoring affects productivity specifically in the US and Europe. This will be followed by a comparison of the two empirical studies. Section 6 summarizes the work and adds some final remarks.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Definition and differentiation of various related terms
- Service offshoring as a new paradigm of trade in the US
- Evolution of service offshoring in the US
- Types of offshored service jobs
- Offshore locations
- Service offshoring volume
- Determinants of service offshoring
- Environmental drivers
- Technological progress
- Emergence of a global talent pool of educated labor
- Firm-level drivers
- Cost reduction
- Access to a qualified workforce
- Prior offshoring experience
- Other reasons
- Coevolutionary perspective
- Risk factors
- Productivity effects of service offshoring
- Impact channels on productivity
- The model of Feenstra and Hanson
- The trade in tasks model by Grossman and Rossi-Hansberg
- Other literature
- Empirical studies on service offshoring and productivity in the US
- Industry-level evidence
- Empirical studies of offshoring and productivity in Europe
- Industry-level evidence
- Comparison of US and European data
- Comparison of the theoretical groundwork
- Comparison of quantitative results
- Other empirical findings
- Conclusion
- Determinants of service offshoring
- Technological progress and the emergence of a global talent pool
- Cost reduction and access to a qualified workforce as firm-level drivers
- The impact of service offshoring on productivity
- Empirical evidence from the US and Europe
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This master's thesis aims to analyze the determinants of service offshoring and its effects on productivity. The research examines the driving forces behind the phenomenon, including both environmental and firm-level factors. The study also investigates the various theoretical models explaining the impact of service offshoring on productivity and analyzes empirical evidence from both the US and Europe.
Zusammenfassung der Kapitel (Chapter Summaries)
The introduction sets the context for the study by discussing the significance of offshoring in a globalized world, especially in light of recent global crises. It emphasizes the need to understand the implications of offshoring for businesses and economies. The second chapter provides a comprehensive definition of service offshoring, differentiating it from related concepts such as outsourcing and globalization. It also explores the evolution of service offshoring in the US, examining the types of offshored service jobs, key offshore locations, and the volume of offshored services. The third chapter delves into the determinants of service offshoring, examining both environmental and firm-level factors. This analysis highlights the role of technological progress, the availability of a skilled workforce, cost reduction strategies, and prior offshoring experience as key drivers.
The fourth chapter focuses on the productivity effects of service offshoring. It explores theoretical models, such as the model of Feenstra and Hanson and the trade in tasks model by Grossman and Rossi-Hansberg, to understand how offshoring can impact productivity. The chapter also analyzes empirical studies from the US and Europe to examine the real-world impact of service offshoring on various industries. Finally, the chapter compares the findings from US and European data, highlighting similarities and differences in the theoretical framework and empirical results. The conclusion synthesizes the main findings of the study and discusses the overall implications for businesses and policy makers.
Schlüsselwörter (Keywords)
The main keywords and focus topics of this master's thesis include service offshoring, globalization, determinants of offshoring, environmental drivers, firm-level drivers, productivity effects, theoretical models, empirical evidence, US and European data, and industry-level analysis.
- Citation du texte
- Anonym (Auteur), 2020, Determinants and Productivity Effects of Service Offshoring, Munich, GRIN Verlag, https://www.grin.com/document/934932