Working Paper

Web use and offshoring


  • Hanley
  • A.
  • Ott
  • I.
Publication Date

Formulating a model which summarises transportation costs, uncertainty and price, we describe how a switch to ICT procurement can impact more readily procured services rather than materials. Uncertainty represents a catch-all factor describing the dovetailing of operations between two neither culturally nor geographically proximate, independent firms. Using a 3-year panel, we find that ICT ‘switchers’ report increases in services offshored by between 1.9 and 1.6 percent. Uniquely, we also report a 2-3 percent reduction in the level of materials offshoring following a switch to internet procurement.

Kiel Institute Expert


JEL Classification

Key Words

  • heterogeneous inputs
  • Offshoring
  • price
  • transportation costs
  • uncertainty
  • Unsichderheit