The employment effects of offshoring: evidence from Korean manufacturing

Author:

Yoon Sang-Chul

Abstract

Purpose – The purpose of this paper is to analyze the offshoring-employment relationship under globalization in Korean manufacturing for the period from 1998 to 2010 using industry-level panel data and Generalized Method of Moments. Design/methodology/approach – For the first time in the literature the type of trade specialization is taken into account, distinguishing manufacturing between export-specialized and import-specialized industries. Findings – There is evidence that materials and services offshoring have a significantly negative effect on employment in export-specialized industries. In contrast, there is a non-significant association in import-specialized industries. Research limitations/implications – These results may cast new light on the offshoring-employment relationship. Originality/value – Major contribution of this paper is that it sheds new light on the effect of offshoring on employment by distinguishing export-specialized industries from import-specialized industries.

Publisher

Emerald

Subject

General Economics, Econometrics and Finance,Industrial relations,Business and International Management

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