The Offshore Services Value Chain : Developing Countries and the Crisis
This paper analyzes the recent evolution and impact of the global economic crisis on the offshore services industry. Using a global value chains framework, the authors classify the offshore services sector in a comprehensive set of general and indu...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100407091357 http://hdl.handle.net/10986/3751 |
| Summary: | This paper analyzes the recent evolution
and impact of the global economic crisis on the offshore
services industry. Using a global value chains framework,
the authors classify the offshore services sector in a
comprehensive set of general and industry-specific
activities that correspond to different segments and stages
in the value-adding process for services. Through an
analysis of the impact of the economic crisis on the
industry, a small decline in demand was found; however this
did not cause any structural changes in the market. The
crisis has created two opposing effects: general contraction
of demand by existing customers due to the recession; and,
at the same time, a substitution effect by which new
services are being moved from developed countries to
emerging economies in search of cost reduction. The paper
concludes that the offshore services industry will continue
to offer growth opportunities for developing countries not
only among existing market players, but also a range of new
countries. The industry has the potential to become an
important source for employment and economic growth around
the globe. |
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