Document Type
Thesis - Open Access
Award Date
2016
Degree Name
Master of Science (MS)
Department / School
Economics
First Advisor
George Langelett
Abstract
Outsourcing of services from the U.S. to developing country like India has been importantly debated over the year on media and amongst Americans, also fears and discussions that increased imports of services will decrease employment and wages. This paper estimates how the services exports from India have helped reduce unemployment and built a better India using a production equilibrium model. The analysis finds that these services exported had a positive effect on GDP, and unemployment in India. Moving the analysis away from India to the U.S., the econometric analysis used a fixed effect panel dataset on the U.S. manufacturing industries from 2006-2013. Contrary to what Americans think, this study found that services imported into the U.S. or business activities shipped from abroad have a relatively small effect on the demand for experienced workers in the United States. Based on the results from the India and the U.S. regression analysis, outsourcing is a win-win thing which is good for both exporting and importing countries on both the long and short run.
Library of Congress Subject Headings
Offshore outsourcing -- India
Offshore outsourcing -- United States
Labor market -- India
Labor market -- United States
India -- Economic conditions
United States -- Economic conditions
Description
Includes bibliographical references (pages 56-59)
Format
application/pdf
Number of Pages
72
Publisher
South Dakota State University
Recommended Citation
Akinyemi, Abidemi, "Outsourcing to the Developing Economy: Its Impacts on GDP and Unemployment. A Case Study of India and the United States of America" (2016). Electronic Theses and Dissertations. 1014.
https://openprairie.sdstate.edu/etd/1014
Included in
Rights Statement
