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This paper reviews existing literature on the offshoring or global outsourcing and employment and empirically analyzes the effect of offshoring on the employment in manufacturing in Korea from 1999-2006. We employed the System GMM with data obtained from the Survey of Mining and Manufacturing, Input-Output Table and SKTC trade statistics. Our findings are as follows. First, narrow offshoring, ie, log real imported inputs from the same industry abroad had a significant positive impact on the log employment. Second, wide offshoring, ie, log real imported inputs from all the industries abroad was insignificant. Third, narrow outsourcing ratio had a significant positive impact on the employment. Fourth, the effect of wide outsourcing ratio also had a significant positive impact on the employment.
