Regional production networks, service offshoring, and productivity in East Asia

Moonsung Kang, Hyuk Hwang Kim, Hongshik Lee, Joonhyung Lee

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

Using the Asian International Input-Output Table (1990, 1995, and 2000), this paper explores regional production networks and offshoring of material and service inputs in East Asia. In doing so, offshoring is measured directly from the Table, which has not been used in previous literature regarding this issue. It turns out that East Asian countries source significant shares of inputs within East Asia. In addition to material offshoring, service offshoring in East Asia has become increasingly common in the era of globalization. We also evaluate the effects of this fast growing offshoring on productivity. Our econometric results demonstrate that offshoring exerts a significant and positive impact on total factor productivity in East Asia. Service offshoring, in particular, performs a more significant role than material offshoring.

Original languageEnglish
Pages (from-to)206-216
Number of pages11
JournalJapan and the World Economy
Volume22
Issue number3
DOIs
Publication statusPublished - 2010 Aug

Keywords

  • Productivity
  • Regional production networks
  • Service offshoring

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics
  • Political Science and International Relations

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