Offshoring and productivity (growth) in Dutch manufacturing and service industries: An empirical asessment

In this paper the authors analyze the effect of offshoring on productivity (growth) while explicitly accounting for the presence of imperfect competition in the output market. The analysis suggests that offshoring has a positive impact on industrial TFP growth while it compresses competition. This latter result can be explained by the fact that, given output prices, lower production costs lead to higher price cost margins.