The extent and impact of offshoring in the European Union (project)

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The extent and impact of offshoring in the European Union

Client/Funding Institution

Anniversary Fund of the Oesterreichische Nationalbank

Abstract

In this project, the impact of both offshoring of production and of services on the structure and the macro-economy of EU countries is examined, using data over the period 1995-2010. In particular, the impact of production and services offshoring on both the level and structure of wages and employment in EU countries is examined. One issue addressed is whether the impact of production offshoring – which is expected to impact negatively upon low-skilled workers – has been offset by the increase in service offshoring, which mainly involves the offshoring of tasks undertaken by skilled labour. Furthermore, the impact of production and service offshoring on the macro-economy as well as on business cycle volatility and co-movement is examined.