We construct a model of offshoring with externalities and firm heterogeneity. Due to the presence of externalities …, temporary shocks like the Y2K problem can have permanent effects, i.e., they can permanently raise the extent of offshoring in … an industry. Also, the initial advantage of a country as a potential host for outsourcing activities can create a lock in …

outsourcing decisions are affected by changes in country and competitor costs. A number of interesting regularities emerge. When a … developed countries. In many cases, the measured responses to cost changes appear to correspond with outsourcing theories that …

This paper examines the relationship between the share of employment potentially affected by offshoring and economic … statistical association between the share of both "non-clerical" and clerical occupations potentially affected by offshoring and …

correspond to an increase in outsourcing by multinationals from the United States and other Northern countries, is to shift …

Estimating the causal effect of offshoring on domestic employment is difficult because of the inherent simultaneity of …. Underlying these results is substantial heterogeneity based on offshoring margin and firm organizational structure. For example …

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 …