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Material Offshoring: Alternate Measures
Author(s) -
Baldwin John R.,
Gu Wulong,
Sydor Aaron,
Yan Beiling
Publication year - 2017
Publication title -
review of income and wealth
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.024
H-Index - 57
eISSN - 1475-4991
pISSN - 0034-6586
DOI - 10.1111/roiw.12195
Subject(s) - offshoring , economics , commodity , production (economics) , manufacturing sector , aggregate (composite) , econometrics , industrial organization , microeconomics , business , outsourcing , international economics , marketing , materials science , market economy , composite material
Industry measures of offshoring of material inputs are often generated using the proportionality assumption applied to aggregate import data—that the import share of each commodity used in the production process for a particular industry is similar to the import share of a commodity for the total economy. This note compares estimates of offshoring for the C anadian manufacturing sector derived using this assumption to four alternatives: two measures that use direct measures of firm‐based imports, and two hybrid measures that use both input and import information. These indirect measures are compared to survey estimates that directly assess import intensity in the production process in an effort to evaluate which indirect method yields more reasonable offshoring measures.