Globalization of the Software Industry: Perspectives and
Opportunities for Developed and Developing Countries
The paper explores the determinants of the growth of the software industry and addresses the question of what lessons, if any, can be drawn from for economic development more generally. The authors conclude that policymakers in the U.S. should not fear the growth of new software producing regions. Instead, the U.S. economy will broadly benefit from their growth.
Link
http://www.nber.org/~confer/2004/IPES04/arora.pdf