How Remote is the Offshoring Threat ? - Sciences Po Accéder directement au contenu
Pré-Publication, Document De Travail Année : 2008

How Remote is the Offshoring Threat ?

Résumé

Advances in communication technology make it possible for workers in India to supply business services to head offices located anywhere. This has the potential to put high-wage workers in direct competition with much lower paid Indian workers. Service trade, however, like goods trade, is subject to strong distance effects, implying that the remote supply of services remains limited. We investigate this proposition by deriving a gravity-like equation for service trade and estimating it for a large sample of countries and different categories of service trade. We find that distance costs are high but are declining over time. Our estimates suggest that delivery costs create a significant advantage for local workers relative to competing workers in distant countries.
Fichier principal
Vignette du fichier
mayer-ries-head-2008.pdf (367.75 Ko) Télécharger le fichier
Origine : Fichiers produits par l'(les) auteur(s)
Loading...

Dates et versions

hal-01066173 , version 1 (19-09-2014)

Identifiants

Citer

Keith Head, Thierry Mayer, John Ries. How Remote is the Offshoring Threat ?. 2008. ⟨hal-01066173⟩
98 Consultations
625 Téléchargements

Partager

Gmail Facebook X LinkedIn More