Number: RL32461
Title: Outsourcing and Insourcing Jobs in the U.S. Economy: Evidence Based on Foreign Investment Data
Authors: James K. Jackson, Foreign Affairs, Defense, and Trade Division 
Abstract: Broad, comprehensive data on U.S. multinational companies generally lag behind current events by two years and were not developed to address the issue of jobs outsourcing. Many economists argue, however, that there is little evidence to date to support the notion that the overseas investment activities of U.S. multinational companies play a significant role in the rate at which jobs are created in the U.S. economy. Instead, they argue that the source of job creation in the economy is rooted in the combination of macroeconomic policies the nation has chosen, the rate of productivity growth, and the availability of resources. This report addresses these issues by analyzing the extent of direct investment into and out of the economy, the role such investment plays in U.S. trade, jobs, and production, and the relationship between direct investment and the broader economic changes that are occurring in the U.S. economy.
Pages: 42
Date: May 13, 2008