We study the short- and long-run implications of offshoring on innovation, technology adoption, wage and income …-abundant West to a skill-scarce East. Profit maximization determines both the extent of offshoring and technological progress …. offshoring induces technical change with an ambiguous factor bias. When the initial level of offshoring is low, an increase in …

Offshoring has received wide attention lately. Its potential effects, mainly to be materialized in employment and … belief, our data reveal that offshoring is not exclusive to large developed economies. Further, we highlight the continuing … prominence of the manufacturing over the services sector, and observe that, while services offshoring is on the rise, it still …

First moves towards a real understanding of the offshoring phenomenon date back only to very recent times, with … industries within the economy and take account of both materials and services offshoring. The results presented here suggest that … we should expect a positive effect of services offshoring on employment, and a positive effect of materials offshoring on …