Using comparable data for nine Western European countries, this paper finds that service offshoring exerts positive and economically large effects on domestic productivity. A one percentage point increase in service offshoring is found to raise Total Factor Productivity by 0.5-0.6 percent.

Using comparable data for nine Western European countries, this paper finds that service offshoring exerts positive and economically large effects on domestic productivity. A one percentage point increase in service offshoring is found to raise Total Factor Productivity by 0.5-0.6 percent.