On the Heterogeneous Employment Effects of Offshoring: Identifying Productivity and Downsizing Channels

Moser, Christoph; Urban, Dieter; Mauro, Beatrice Weder di

doi:10.1111/ecin.12124

Cited by 27 publications

(27 citation statements)

References 70 publications

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“…The share of offshoring plants is with a value of 21.45% higher than the share of offshoring firms reported by Moser et al. (). The reason for this difference is that Moser et al.…”

Section: Data Sources and Descriptivescontrasting

confidence: 56%

“…Following Moser et al. (), we associate offshoring with the purchase of intermediates or other inputs from abroad in the previous business year. To capture the idea that offshoring is low‐cost seeking, we restrict its definition to intermediate goods imports from non‐EMU members…”

Section: Data Sources and Descriptivesmentioning

confidence: 99%

“…The reason for this difference is that Moser et al. () define offshoring by a qualitative increase of a firm’s share of foreign intermediates in two consecutive periods with offshoring information, which is a more restrictive definition of offshoring than the one we use in our cross‐section. The second row tells us that there is a lot of variation in the task range of German producers.…”

Section: Data Sources and Descriptivesmentioning

confidence: 99%

“…Although, grosso modo , this pattern is consistent with the data (cf. Bernard, Jensen, Redding, & Schott, ; Hummels, Jørgensen, Munch, & Xiang, ; Moser, Urban, & Weder di Mauro, ), existing theoretical work misses the empirical fact that offshoring and nonoffshoring producers coexist over a wide range of the productivity distribution, as put forward by Tomiura () and Antràs and Yeaple () for Japanese and Spanish firms, respectively.…”

Section: Introductionmentioning

confidence: 99%

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Offshoring and firm overlap: Welfare effects with non‐sharp selection into offshoring

Capuano

Egger

Koch

et al. 2019

Rev International Economics

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Using German establishment data, we provide evidence for selection of larger, more productive producers into offshoring. However, the selection is not sharp, and offshoring and nonoffshoring producers coexist over a wide range of the revenue distribution. To explain this overlap, we set up a model of offshoring, in which we decouple offshoring status from revenues through heterogeneity in two technology parameters. In an empirical analysis, we employ German establishment data to estimate key parameters of the model and show that disregarding the overlap has large quantitative effects. It lowers the estimated gains from offshoring by almost 50% and, at the same time, exaggerates the role of the extensive margin for explaining the evolution of German offshoring since the 1990s.

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“…The share of offshoring plants is with a value of 21.45% higher than the share of offshoring firms reported by Moser et al. (). The reason for this difference is that Moser et al.…”

Section: Data Sources and Descriptivescontrasting

confidence: 56%

Section: Data Sources and Descriptivesmentioning

confidence: 99%

Section: Data Sources and Descriptivesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Offshoring and firm overlap: Welfare effects with non‐sharp selection into offshoring

Capuano

Egger

Koch

et al. 2019

Rev International Economics

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show abstract

“…However, some useful insights for investment can be drawn. Moser et al (2015) identifies the different channels by which offshoring affects employment with different outcomes. While the substitution of the firm's own production implies a direct loss through downsizing, firms also experience a growth in productivity, which allows them to increase their domestic and foreign market share, both of which result in employment gains.…”

Section: Offshoring and Its Effect On Investmentmentioning

confidence: 99%

The financialisation–offshoring nexus and the capital accumulation of US non-financial firms

Auvray

Rabinovich

2019

Cambridge Journal of Economics

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The financialisation of non-financial corporations has drawn the attention of many scholars who have identified two main channels through which financialisation occurs: a higher proportion of financial assets compared to non-financial ones and a higher amount of resources diverted to financial markets. A consequence of this process is a decrease in investment. Parallel to financialisation, many non-financial corporations have also engaged in an internationalisation of their productive activities, organising them under global value chains. Though offshoring may also explain the decrease in the level of investment of non-financial firms, the intersections between the literature on financialisation and the literature on global value chain remain surprisingly underdeveloped. This paper contributes to fill this gap using panel regressions for US non-financial corporations between 1995 and 2011. We find evidence that both offshoring and financialisation are determinants to the decrease in investment and that financialisation occurs mainly among firms belonging to sectors prone to offshoring.

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Manufacturing reshoring and sustainable development goals: A home versus host country perspective

Di Stefano,

Fratocchi,

Martínez‐Mora

et al. 2023

Sustainable Development

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After decades of offshoring their manufacturing activities, an increasing number of companies are revising their location strategies and implementing reshoring decisions, including backshoring (relocation in the home country) and nearshoring (relocation in the home region) alternatives. It has been recognized that reshoring strategies are consistent with the sustainable production approach, since they allow companies to produce goods in a manner that is socially beneficial, economically viable, and environmentally less harmful over the whole life cycle of those goods. Additionally, there are early indications that reshoring can also promote and support sustainable consumption approaches. Consequently, reshoring has a wide range of impacts in both the home and the host countries, also in terms of the Sustainable Development Goals (SDGs). However, this topic has received little attention in the extant reshoring literature. This paper seeks to contribute to the discussion by adopting a two‐step approach. Initially, we analyze the very few contributions available on this topic; then, we identify and discuss which of the 17 SDGs are impacted by reshoring decisions at both the home and the host country level. It emerges that reshoring decisions have several and differentiated impacts in terms of SDGs. In general, these impacts are positive for home countries and negative for host ones. For this reason, a trade‐off emerges when a single relocation decision is taken and implemented. Based on this evidence, implications for scholars, managers and policy makers are presented and discussed.

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On the Heterogeneous Employment Effects of Offshoring: Identifying Productivity and Downsizing Channels

Cited by 27 publications

References 70 publications

Offshoring and firm overlap: Welfare effects with non‐sharp selection into offshoring

Offshoring and firm overlap: Welfare effects with non‐sharp selection into offshoring

The financialisation–offshoring nexus and the capital accumulation of US non-financial firms

Manufacturing reshoring and sustainable development goals: A home versus host country perspective

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