The growth in offshoring and its economic effects have been the subject of extensive empirical analysis. This paper attempts to analyze the effects of offshoring on productivity in the Korean service industry from 2000 to 2009. The empirical results show that service offshoring has a significant positive effect on productivity growth in the Korean service industries during the sample period. However, there is not enough evidence to suggest that total factor productivity of service sectors in Korea benefited from material offshoring. In particular, a positive link is observed between import specialization and productivity growth in the Korean service industries. In addition, the author also finds that the positive impact of service offshoring on productivity in the Korean service industries increases when we trade specialization is accounted for. These results imply that further liberalization of trade in services can lead to a beneficial impact on productivity growth in the service industries.
Abstract
Ⅰ. Introduction
Ⅱ. The Empirical Model
Ⅲ. Data and Measurement of Offshoring
Ⅳ. Empirical Results
Ⅴ. Conclusion
References
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