Recent contributions on offshoring often assume that firms can freely split their production process into separate … technologically determined sequence of production steps. In our model, cost savings from offshoring fluctuate along the production … from offshoring even if relocating individual steps would be advantageous in terms of offshoring costs, or they may …

In this paper, we develop a two-sector general equilibrium trade model which includes offshoring, sequential production … technological change affect equilibrium offshoring patterns. We show that, against common belief, a reduction in trade costs lowers … the range of tasks offshored even though the aggregate volume of offshoring may increase. …

We investigate the impact of international outsourcing on productivity using plant level data for Irish manufacturing …. Specifically, we distinguish the effect of outsourcing of materials from services inputs. Moreover, we examine whether the impact … multinational. Our results show robust evidence for positive effects from outsourcing of services inputs for exporters, either …