Résumé
This paper investigates the impact of international outsourcing on total employment using two-digit manufacturing data for seven EU countries for the period of 1995-2000. Estimates using OLS first differences show that imported materials from the same industry originating from low-wage countries have a significant and negative impact on total employment. The estimates suggest that rising intermediate imports from low-wage countries may account for an approximate reduction of 0.25 percentage points in employment per year. Sample split regressions show that the impact of imported materials from low-wage countries is statistically significant in industries with low skill intensity but not in skill intensive industries such as machinery, electrical, optical and transport equipment.
Voir le contenu complet de ce document
Extrait
Employment Effects of Trade in Intermediate Inputs with the Eu Member States and Asia
1 Introduction
Poor employment performance in manufacturing in the EU15 countries has generated an ongoing debate on the impact of trade with low-wage countries. Increased international outsourcing and import competition are often blamed for the deteriorating labour demand in European manufacturing. Indeed, every European country has experienced an increase in import penetration in manufacturing. Our own calculations suggest that one half of the increase in imports can be attributed to the imports from low-wage countries. The literature is in agreement with the fact that imports from low income Central and Eastern European as well as East Asian countries were the fastest growing components of trade (BERNARD et al. 2003; BOSTON CONSULTING GROUP 2004; GREENAWAY et al. 1999). This increase in imports is also due to the enlargement of international outsourcing activities in European manufacturing. Between 1995 and 2000 the ratio of imported materials from the same industry to gross ...Voir le contenu complet de ce document
Liens sponsorisés
