Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/179958 
Year of Publication: 
2018
Series/Report no.: 
Bundesbank Discussion Paper No. 17/2018
Publisher: 
Deutsche Bundesbank, Frankfurt a. M.
Abstract: 
While there is a consensus in the literature that offshoring has a polarising effect on the skill structure of labour demand, little is known about its impact on the capital side. In this paper, we analyse the effect of offshoring on the demand for capital by asset class using a rich country-sector panel dataset. Estimating a system of factor demand equations, we document that offshoring reduces the relative demand for non-ICT capital, thereby also polarising the demand for capital. Our results are robust against a wide range of specifications and methodological choices including an IV approach to address endogeneity concerns.
Subjects: 
offshoring
trade
global value chains
demand for capital
user costs of capital
ICT
JEL: 
F14
F62
F20
E22
ISBN: 
978-3-95729-461-6
Document Type: 
Working Paper

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