) 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. …

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 …