Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/86637
Authors: 
den Butter, Frank A.G.
Pattipeilohy, Christiaan
Year of Publication: 
2007
Series/Report no.: 
Tinbergen Institute Discussion Paper 07-089/3
Abstract: 
A major question in the globalization debate is whether outsourcing and offshoring activities are beneficial to the home country. This paper investigates the effects on productivity and trade from the perspective of transaction costs, using a recent theory on trade in tasks. A production function is estimated for the Netherlands for the period 1972-2001. It suggests that the effect of offshoring manufacturing and services on total factor productivity (TFP) is positive and larger than the effect of R&D on productivity.
Subjects: 
globalization
offshoring
foreign direct investments
transaction costs
total factor productivity
JEL: 
F10
F43
O47
Document Type: 
Working Paper

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