We study the short- and long-run implications of offshoring on innovation, technology adoption, wage and income …-abundant West to a skill-scarce East. Profit maximization determines both the extent of offshoring and technological progress …. offshoring induces technical change with an ambiguous factor bias. When the initial level of offshoring is low, an increase in …

-level studies showing that off-shoring is associated with a higher share of corporate profit in total value added. But these … “dynamic” gains from off-shoring have not been realized, because firms have purchased financial assets – especially share …