Document Type

Thesis - Open Access

Award Date


Degree Name

Master of Science (MS)

Department / School


First Advisor

George Langelett


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


Includes bibliographical references (pages 56-59)



Number of Pages



South Dakota State University

Included in

Economics Commons



Rights Statement

In Copyright