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1 Does services offshoring boost productivity? Some Canadian evidence on causation
BibTeX
@MISC{Wernerheim_1does,
author = {C. Michael Wernerheim},
title = {1 Does services offshoring boost productivity? Some Canadian evidence on causation},
year = {}
}
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Abstract
The quest to enhance productivity makes outsourcing not only an important corporate strategy, but a focus of public policy as well. Existing studies consider correlations between outsourcing and productivity. This paper attempts to examine causation. We use annual time series data for Canada on international outsourcing of services, and total factor productivity for the period 1961-2005 for three sectors: manufacturing; business services; and all other services. The statistical results reveal startling differences in the direction of causality across sectors. This has implications for how trade liberalization, for example, can be expected to affect the contribution of services to national productivity growth. 1.
