The extent and impact of offshoring in the European Union

Client/Funding Institution

Anniversary Fund of the Oesterreichische Nationalbank


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.


July 2011 - June 2013

wiiw team Leader

Sandor Richter

wiiw Staff

Neil Foster-McGregor, Robert Stehrer, Cornelia Stocker-Waldhuber

Keywords: labour market, international trade

Countries covered: China, EU27, Russia, Turkey

Research Areas: Labour, Migration and Income Distribution, International Trade, Competitiveness and FDI