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The impact of offshoring on productivity and innovation: Evidence from Swedish manufacturing firms

Author

Listed:
  • Christopher F. Baum

    (Boston College
    DIW Berlin
    CESIS, KTH Royal Institute of Technology)

  • Hans Lööf

    (CESIS, KTH Royal Institute of Technology)

  • Andreas Stephan

    (Jönköping International Business School
    DIW Berlin)

  • Ingrid Viklund-Ros

    (CESIS, KTH Royal Institute of Technology)

Abstract

This paper examines the impact of offshoring on total factor productivity (TFP) and innovation measured by patent applications. It applies instrumental variable and matching approaches on a panel of about 7,500 Swedish manufacturing firms over the period 2001--2014, and identifies offshoring-related intermediate imports by the United Nations Broad Economic Categories system. Accounting for selection and simultaneity bias, no causal impact on TFP can be established, while the estimated positive effect on innovation is found to be weakly significant.

Suggested Citation

  • Christopher F. Baum & Hans Lööf & Andreas Stephan & Ingrid Viklund-Ros, 2020. "The impact of offshoring on productivity and innovation: Evidence from Swedish manufacturing firms," Boston College Working Papers in Economics 1014, Boston College Department of Economics, revised 19 Apr 2021.
    • Handle: RePEc:boc:bocoec:1014
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    References listed on IDEAS

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    More about this item

    Keywords

    offshoring; patent; trademark; innovation; productivity; panel data;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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