Population-Ageing, Structural Change and Productivity Growth

Denis Stijepic, Helmut Wagner
2012 Social Science Research Network  
We analyze the effects of offshoring in a multisector-growth-model where the sectors differ by TFP-growth. Our results imply that offshoring influences the long run growth rate of the economy along different channels and that the growth effects depend on the development of terms of trade and on whether low-productivity-growthactivities or high-productivity-growth-activities are offshored. Negative growth effects can arise provided that some dependencies exist between countries. Furthermore,
more » ... horing has an impact on structural change. It can slow down or accelerate the structural change patterns of the economy that offshores depending on the development of terms of trade.
doi:10.2139/ssrn.2020284 fatcat:oezmejn5gragrovb7ahbog3s4u