TY - JOUR AU - Amiti,Mary AU - Wei,Shang-Jin TI - Service Offshoring and Productivity: Evidence from the United States JF - National Bureau of Economic Research Working Paper Series VL - No. 11926 PY - 2006 Y2 - January 2006 UR - http://www.nber.org/papers/w11926 L1 - http://www.nber.org/papers/w11926.pdf N1 - Author contact info: Mary Amiti International Research Federal Reserve Bank of New York 33 Liberty St New York, NY 10045-0001 E-Mail: Mary.Amiti@ny.frb.org Shang-Jin Wei Graduate School of Business Columbia University Uris Hall 619 3022 Broadway New York, NY 10027-6902 Tel: 212/854-9139 E-Mail: shangjin.wei@columbia.edu M2 - featured in NBER digest on 2006-03-01 AB - The practice of sourcing service inputs from overseas suppliers has been growing in response to new technologies that have made it possible to trade in some business and computing services that were previously considered non-tradable. This paper estimates the effects of offshoring on productivity in US manufacturing industries between 1992 and 2000. It finds that service offshoring has a significant positive effect on productivity in the US, accounting for around 10 percent of labor productivity growth during this period. Offshoring material inputs also has a positive effect on productivity, but the magnitude is smaller accounting for approximately 5 percent of productivity growth. ER -