The politics and economics of offshore outsourcing

By Gregory Mankiw, P. Swagel. 2006

339 citations recorded by the source corpus.

This paper reviews the political uproar over offshore outsourcing connected with the release of the Economic Report of the President (ERP) in February 2004, examines the differing ways in which economists and non-economists talk about offshore outsourcing, and assesses the empirical evidence on the importance of offshore outsourcing in accounting for the weak labor market from 2001 to 2004. Even with important gaps in the data, the empirical literature is able to conclude that offshore outsourcing is unlikely to have accounted for a meaningful part of the job losses in the recent downturn or contributed much to the slow labor market rebound. The empirical evidence to date, while still tentative, actually suggests that increased employment in the overseas affiliates of U.S. multinationals is associated with more employment in the U.S. parent rather than less.

Subfields: Economics and Econometrics, Management Information Systems

View Paper: https://www.semanticscholar.org/paper/e10f6276bf9e9a9b2eae7c15cc3f776d6b994d21

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Citations in the corpus

Outward FDI and Local Employment Growth in Italy (2008, background): “See Mankiw and Swagel (2006) for a case where the concern of public opinion and the press about offshoring was very strong.”
The rise of the entrepreneurial economy and the future of dynamic capitalism (2013, background): “…towards reorganization is that the lower skilled workers find it more difficult to maintain or find work in OECD countries, while knowledge-based workers enjoy a strong demand, resulting in a divergence of unemployment rates between highly skilled and unskilled workers (Mankiw and Swagel, 2006).”
Costly Jobs: Trade-related Layoffs, Government Compensation, and Voting in U.S. Elections (2011, methodology): “11 Figure 1 is an extension of data presented in Mankiw and Swagel (2006).”
The rise of offshoring: it's not wine for cloth anymore (2006, background): “Evidence of increased task trade Media interest in offshoring (or what the press often misleadingly refers to as “outsourcing”) exploded during the period before the U.S. presidential election of 2004, as Mankiw and Swagel (2006) have documented, and any resident at the time will surely recall.”
How Remote is the Offshoring Threat (2009, neutral): “First, as emphasized in the recent paper by Santos Silva and Tenreyro (2007), least squares estimation of equation (10) only yields consistent estimates of the parameters of (7) if the error term uod is homoskedastic and normally distributed.”
30+ years of research and practice of outsourcing – Exploring the past and anticipating the future (2009, neutral): “The role of the local governments (in both the home and the target country) as well as the role of international organizations and treaties can be very important in this context (Mankiw and Swagel, 2006).”
Global Value Chains in a Postcrisis World: Resilience, Consolidation, and Shifting End Markets (2010, background): “McKibbin and Stoeckel (2009) point out that the distinction between durable and nondurable goods is fundamental to explain the overreaction of trade to the contraction of GDP in the recent crisis.”
Facilitating international production networks: The role of trade logistics (2012, neutral): “…drivers, and mechanisms of fragmentation in production networks—and especially under what circumstances firms decide to outsource—whether motivated by strategic or cost-saving decisions (for a complete review of the literature on outsourcing, see Mankiw and Swagel, 2006; and Escaith et al., 2010).”
A Dynamic Perspective on Next-Generation Offshoring: The Global Sourcing of Science and Engineering Talent (2008, background): “…jobs (FDI, employment statistics) Other impacts on domestic economy Engardio et al. (2003), Garner (2006), Global Insight (2004), Lieberman (2004), Mankiw & Swagel (2006), Olsen (2006), van Ark et al. (2006) Policy-oriented reports Impact of service offshoring on prices, productivity, exports,…”