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Fear of Service Outsourcing: Is It Justified?

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  • Mary Amiti
  • Shang-Jin Wei

Abstract

The recent media and political attention on service outsourcing from developed to developing countries gives the impression that outsourcing is exploding. As a result, workers in industrial countries are anxious about job losses. This paper aims to establish what are the hypes and what are the facts. The results show that although service outsourcing has been steadily increasing it is still very low, and that in the United States and many other industrial countries "insourcing" is greater than outsourcing. Using the United Kingdom as a case study, we find that job growth at a sectoral level is not negatively related to service outsourcing.

Suggested Citation

  • Mary Amiti & Shang-Jin Wei, 2004. "Fear of Service Outsourcing: Is It Justified?," IMF Working Papers 2004/186, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2004/186
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    More about this item

    Keywords

    WP; service outsourcing; business service; intensity ratio; outsourcing intensity; material outsourcing;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business

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