Publication

This study examines the effects of offshoring in Europe between 1995 and 2008 taking into account the distinction between offshoring, domestic outsourcing, and the substitution of domestic by foreign suppliers. It shows that service inputs have been offshored and domestically outsourced, whereas material inputs have been either offshored or moved from domestic to foreign suppliers. The author further suggests that offshoring of non-core activities has led to productivity gains whereas offshoring of core activities and domestic outsourcing have had no such effects.