Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/114110
Authors: 
Benfratello, Luigi
Razzolini, Tiziano
Sembenelli, Alessandro
Year of Publication: 
2015
Series/Report no.: 
IZA Discussion Papers 9239
Abstract: 
We provide evidence on the effect of ICT investment on the propensity to offshore for a sample of Italian manufacturing firms. To deal with the endogeneity of ICT investment we adopt an innovative identification strategy based on the availability of local broad band facilities. Contrary to previous literature focusing on services, we find a negative effect of ICT on offshoring. Furthermore, when splitting the sample according to the technological level, the effect is negative and significant only in the sub-sample of low-tech firms. This suggests that ICT capital substitutes for foreign workers in performing routine tasks in low-tech industries.
Subjects: 
ICT Investment
offshoring
maximum likelihood system estimation
JEL: 
C34
C35
F20
L23
Document Type: 
Working Paper

Files in This Item:
File
Size
607.2 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.