Munich Personal RePEc Archive

India's specialisation in IT exports: Offshoring can't defy gravity

Meyer, Thomas (2007): India's specialisation in IT exports: Offshoring can't defy gravity. Published in: Deutsche Bank Research, Research Notes No. 27 (2007)

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India’s actual export specialisation in IT services is unrivalled by any comparable country and it is evidence of a strong comparative advantage. This paper finds that India owes its IT specialisation in part to its reliance on offshoring - driven by the supply of well-educated, English-speaking and affordable workers - but also to a shift away from high-tech manufacturing exports. Going forward, India's specialisation on IT and other high-tech exports may decline as rising wages erode one of the reasons for offshoring.

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