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 …

In this paper, in order to study the impact of offshoring on sectoral and economywide rates of unemployment, we … offshoring. This result can be understood to arise from the productivity enhancing (cost reducing) effect of offshoring. If the … search cost is identical in the two sectors, or even if the search cost is higher in the sector which experiences offshoring …

explored in an in-depth qualitative examination of sourcing practices in drug development. The outsourcing of central … biotechnology firms, I explain why outsourcing deals take the form of embedded relationships in the first setting, and of seemingly …

sourcing locations, and leads to non-monotonic responses in third markets to bilateral trade cost changes …