The City-Level Effects of Offshoring ()
ABSTRACT
This paper uses a city-level computable general equilibrium (CGE) model
to examine the impacts of offshoring for three different periods in the US economy
for cities that did not lose jobs to firms relocating overseas. We examine offshoring of
final retail and merchandising goods in the 1950- 1980 period, manufactured
goods (intermediate goods) in the 1970-2000 period, and current service sector
and high-skilled jobs. The impacts of offshoring vary considerably over these
time periods. Most notably, when offshoring occurs in high-skilled industries
such as computer software and bioengineering, the contributions to economic
growth will be smaller compared to the retail and manufacturing experiences
over the last 60 years. The results also show wage and per household income
effects.
Share and Cite:
Burnett, P. and Cutler, H. (2014) The City-Level Effects of Offshoring.
Modern Economy,
5, 1022-1029. doi:
10.4236/me.2014.510094.
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