Empirical Economic Bulletin, An Undergraduate Journal


This paper will use an existing model from Amiti and Wei (2009) to illustrate the potentially positive effects that offshoring will have on the productivity of American IT workers and the IT industry. The inputs that will be used to measure productivity are labor, capital, materials, service inputs, and the offshoring of materials and services and were collected from the Bureau of Economic Analysis and the Bureau of Labor Statistics. Based on a previous study from Amiti and Wei (2009), the results may suggest that there is a positive correlation from offshoring and productivity.