This paper uses micro-data from the World Bank Investment Climate Surveys 2002-2006 to investigate how foreign …

exports and take this model to data from Germany, one of the leading actors on the world market for goods. In line with …

) 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 …

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 …

In this paper, we explore the role of trade in differentiated final goods as well offshoring of tasks for inequality … premium as well as on international inequality measured in income per head. We compare these effects in a world where trade is … restricted to differentiated final goods with a world with trade in both final goods and production tasks. …