A rigorous approach to business services offshoring and North–North trade. Issue 15 (27th March 2016)

• Record Type: Journal Article
• Authors: Dluhosch, Barbara; Hens, Thorsten
• Is Part Of: Applied economics. Volume 48:Issue 15(2016)
• Page Start: 1390
• Page End: 1401
• Publication Date: 2016-03-27
• Subjects: International trade -- global value chains -- service links -- business services -- high-skilled labour; F16 -- F12 -- L89 -- J31; Economics -- Periodicals; 330
• DOI: 10.1080/00036846.2015.1100259
• Languages: English
• ISSNs: 0003-6846

Abstract

ABSTRACT: Advances in information and communication technologies (ICTs) have gained economy-wide importance and raised concerns that even within North–North trade neither services nor high-skilled labour may be sheltered from international competition. Rather, both may be increasingly susceptible to offshoring. We present a novel theoretical framework for analysing offshoring with a focus on skilled labour in managing value-added chains. Thoroughly modelling demand and supply allows to explicitly track cause and effects. Accordingly, effects of business service offshoring are completely different and more diverse than those of material offshoring, with the effects inter alia depending on whether triggered by trade integration or ICT.