This paper estimates the effects of offshoring on productivity in U.S. manufacturing industries between 1992 and 2000 … during this period. Offshoring material inputs also has a positive effect on productivity, but the magnitude is smaller …, using instrumental variables estimation to address the potential endogeneity of offshoring. It finds that service offshoring …

growth has largely kept pace with private sector real output growth, that productivity growth has been much higher, and that … result of productivity growth (assumed to reflect automation) and are part of a long-term trend. Since the 1980s, however …, the apparently robust growth in manufacturing real output and productivity have been driven by a relatively small industry …