Premium
Offshoring and Outsourcing Potentials: Evidence from German Micro‐Level Data
Author(s) -
Brändle Tobias,
Koch Andreas
Publication year - 2017
Publication title -
the world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/twec.12439
Subject(s) - outsourcing , offshoring , relocation , german , econometrics , set (abstract data type) , principal component analysis , industrial organization , business , economics , empirical evidence , variation (astronomy) , measure (data warehouse) , economic geography , marketing , computer science , statistics , mathematics , database , geography , archaeology , programming language , philosophy , physics , epistemology , astrophysics
This paper provides two indicators that measure: (i) offshoring potentials (cross‐country geographical relocation) and (ii) outsourcing potentials (organisational relocation) separately at the level of jobs, occupations, tasks and industries. We use four waves of the BIBB / BA uA Labour Force Survey in Germany and apply principal component analysis based on a large set of potential determinants of offshoring and outsourcing derived from the literature. Our results show significant variation across these levels in the determinants of both dimensions. We provide a comprehensive empirical classification of the determinants of how easily jobs can be offshored and outsourced. This can serve as a basis for further research to investigate the economic effects of job offshoreability.