I provide new empirical evidence on the direct and indirect impact of services offshoring on local employment and wages …, using a unique dataset on firms in the UK for the period 2000-2015. Exploiting variation in firms' services offshoring … across labour markets, I show positive aggregate local labour employment and wage elasticity to services offshoring …

We study the implications of services trade for firm innovation. Using a quasi-experimental shift-share design, we find … that access to foreign knowledge-related services improves the innovativeness of domestic firms and complements their …’ innovation efficiency by mitigating decreasing economies of scale in in-house innovation efforts. As a result, firms become more …

sector. Using data from a survey of innovative activities in services we show that investment in information technology (IT …) has a stronger effect on the quality of services than on the productivity of the IT-using firm. IT investment seems to be …