) can offshore routine tasks to a low-wage host country. The most productive firms self-select into offshoring, and the … impact on welfare in the source country can be positive or negative, depending on the share of firms engaged in offshoring … among entrepreneurs is higher with offshoring than in autarky. All results hold in a model extension with firm-level rent …

In this paper, we explore the role of trade in differentiated final goods as well offshoring of tasks for inequality …

We show that, even with flexible domestic wages, international outsourcing may worsen the welfare of the home country … and reduce the profits of all firms. If wages are rigid, outsourcing is welfare-improving if and only if the sum of the … welfare. We also extend the model to a two-period framework. Delaying outsourcing can be gainful because the fixed cost of …

equilibrium where input sub-bundles may be traded (offshoring). The model allows for several goods and two fragments, produced …. I also explore trade policy implications and compare offshoring to migration. …

How do offshoring and immigration affect the employment of native workers? What kinds of jobs suffer, or benefit, most … looked at the effects of offshoring and immigration separately, we argue that one can gain useful insights by jointly …. Third, we use the model to draw systematic predictions about the effects of immigration and offshoring on native workers and …

We study the relation between the off-shoring of intermediates and services and productivity growth in the Italian … manufacturing industries in 1995-2003. Our results indicate that the off-shoring of intermediates within the same industry (“narrow … off-shoring”) is beneficial for productivity growth, while the off-shoring of services is not. We also find that the way …

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. Conversely, small variations in model parameters …

Recent empirical studies have been searching for evidence on and driving forces for offshoring. Frequently, this has … competing with the role of multilateral trade resistance. Our results support evidence for offshoring activities across Europe …