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Offshoring and labor markets in developing countries

Author

Listed:
  • Arnab K. Basu

    (Cornell University, USA, and IZA, Germany)

  • Nancy H. Chau

    (Cornell University, USA, and IZA, Germany)

Abstract

Developing countries are often seen as unquestionable beneficiaries in the phenomenal rise of global value chains in international trade. Offshoring—the cross-border trade in intermediate goods and services which facilitate country-level specialization in subsets of production tasks—enables an early start in global trade integration even when the requisite technology and knowhow for cost-effective production from scratch to finish are not yet acquired. A growing economics literature suggests a more nuanced view, however. Policymakers should be mindful of issues related to inequality across firms and wages, labor standards, and effects of trade policy.

Suggested Citation

  • Arnab K. Basu & Nancy H. Chau, 2022. "Offshoring and labor markets in developing countries," IZA World of Labor, Institute of Labor Economics (IZA), pages 499-499, September.
    • Handle: RePEc:iza:izawol:journl:2022:n:499
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    References listed on IDEAS

    as
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    5. Gene M. Grossman & Esteban Rossi-Hansberg, 2008. "Trading Tasks: A Simple Theory of Offshoring," American Economic Review, American Economic Association, vol. 98(5), pages 1978-1997, December.
    6. Subhayu Bandyopadhyay & Arnab K. Basu & Nancy H. Chau & Devashish Mitra, 2020. "Consequences Of Offshoring To Developing Nations: Labor‐Market Outcomes, Welfare, And Corrective Interventions," Economic Inquiry, Western Economic Association International, vol. 58(1), pages 209-224, January.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    offshoring; globalization; labor markets in developing countries;
    All these keywords.

    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • F6 - International Economics - - Economic Impacts of Globalization

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