The employment effects of offshoring: evidence from Korean manufacturing
ISSN: 1229-828X
Article publication date: 7 March 2016
Issue publication date: 7 March 2016
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.
Keywords
Acknowledgements
JEL Classification — F16, F14, C33
© Korea Trade and Research Association
The first version of this work titled “The Impacts of Offshoring on Employment: The Case of South Korea 1993-2009” was prepared for the conference on 2012 Korea’s Allied Economic Association (KAEA) Annual Meeting, Seoul, February 21, 2012.
Citation
Yoon, S.-C. (2016), "The employment effects of offshoring: evidence from Korean manufacturing", Journal of Korea Trade, Vol. 20 No. 1, pp. 21-34. https://doi.org/10.1108/JKT-03-2016-002
Publisher
:Emerald Group Publishing Limited