|
2006 News Releases
For immediate release:
February 27, 2006
Media contact:
James Hoard
Phone: (214) 922-5307
e-mail: james.hoard@dal.frb.org
Dallas Fed’s
Economic Letter Examines Benefits of Offshore Outsourcing
DALLAS—In the long run,
offshore outsourcing results in overall economic gains,
such as lower consumer prices, better products and higher
productivity growth, according to the latest issue of
the Federal Reserve Bank of Dallas’ Economic
Letter.
In “Beyond the Outsourcing
Angst: Making America More Productive,” Dallas
Fed senior economist Thomas F. Siems writes that although
offshore outsourcing can negatively impact jobs and
wages for some workers, it is better for the economy
to accept the challenge of competition.
Siems asserts that protectionist
legislation could increase domestic prices and stifle
innovation.
“Indeed, the secret to faster
growth and greater prosperity lies in allowing individuals
and businesses to do what they do best—and outsource
the rest,” he says.
Globalization doesn’t just
mean increased competition; it opens opportunities for
cooperation, according to Siems. Through global outsourcing,
companies become more dynamic.
The February 2006 issue of Economic
Letter can be found at www.dallasfed.org.
-30-
|
