OFFSHORING AND LABOUR DEMAND: IMPLICATIONS FOR THE SLOVAK REPUBLIC

The emergence of global chains supply caused that production stages are divided and distributed across countries. This fundamentally alters the nature of international trade, away from trade in goods towards trade in tasks and activities, with profound implications for the labour markets. The aim of this paper is to examine the impact of offshoring on labour demand in the Slovak republic. In order to measure the impact of offshoring we estimate the system of cost share equations derived from translog cost function. The equations for different cost shares are estimated using seemingly unrelated regression (SUR). The data covers period 1995-2009 and come from WIOD database.