partly imported intermediates (= outsourcing or fragmentation) (ii) increased employment due to higher demand caused by an …

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 …

these stages. This paper looks at both cost minimising and equilibrium offshoring under different technological … wide range of production stages. There can be overshooting (off-shoring that is reversed as costs fall further) and … equilibrium may involve less off-shoring than is efficient"--National Bureau of Economic Research web site …