TY - JOUR
T1 - The effects of offshoring to China
T2 - reallocation, employment and productivity in Taiwan
AU - Driffield, N.
AU - Chiang, P.C. (Michelle)
PY - 2009/2
Y1 - 2009/2
N2 - We examine the extent to which outward FDI from Taiwan to mainland China has contributed to the rising unemployment rate in Taiwan. Further, it examines whether outward FDI has contributed to productivity growth in Taiwan, and the importance of linkages between sectors in determining these effects. We provide strong evidence that Taiwanese firms have increased their investments in China, and that this has lead to a reduction in employment in such sectors at home. Further, we show that these effects are also translated up the supply chain, such that outward FDI also leads to a reduction in employment upstream in the supply chain.
AB - We examine the extent to which outward FDI from Taiwan to mainland China has contributed to the rising unemployment rate in Taiwan. Further, it examines whether outward FDI has contributed to productivity growth in Taiwan, and the importance of linkages between sectors in determining these effects. We provide strong evidence that Taiwanese firms have increased their investments in China, and that this has lead to a reduction in employment in such sectors at home. Further, we show that these effects are also translated up the supply chain, such that outward FDI also leads to a reduction in employment upstream in the supply chain.
KW - FDI
KW - offshoring
KW - productivity
UR - http://www.scopus.com/inward/record.url?scp=61449144544&partnerID=8YFLogxK
UR - http://www.tandfonline.com/10.1080/13571510802638916
U2 - 10.1080/13571510802638916
DO - 10.1080/13571510802638916
M3 - Article
SN - 1357-1516
VL - 16
SP - 19
EP - 38
JO - International Journal of the Economics of Business
JF - International Journal of the Economics of Business
IS - 1
ER -