Abstract
We employ input-output tables to study the relation between off-shoring and productivity growth in the Italian manufacturing in dustries in 1995-2003. Our results indicate that not all types of off-shoring are positively related to productivity growth. In particular, the internation al outsourcing of intermediates within the same industry (“narrow off-shoring”) is beneficial for productivity growth, while the off-shoring of services is not. W e also find that the way in which off-shoring is measured may matter considerably. The positive relation between off-shoring of intermediates and productivity growt h disappears when our direct measure of off-shoring is replaced with the Feenstr a-Hanson measure employed in other studies.
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