exports. The paper modifies Arkolakis’s (2010) model of trade with heterogeneous firms by introducing endogenous quality and … choice of lower-quality products dominates the price distortion effect resulting from credit constraints. However, a … competing theory based on the alternative assumption that quality is exogenous across firms would predict completely opposite …

) 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 show that in a Ricardo-Viner-type trade model with unemployment due to search and matching the productivity effect … of offshoring emphasized by Grossman & Rossi-Hansberg (2008) emerges as a vehicle of job creation. Improvements in the … technology of offshoring causes job losses at the extensive margin where ever more tasks are performed abroad, but it also causes …

addition to income taxes) have distributional consequences because the high-quality imported varieties are consumed only by …

This paper derives a new effect of trade liberalisation on the quality of the environment. We show that in the presence …

labor market frictions to study the impact of offshoring on intrafirm, intrasectoral, and intersectoral reallocation of jobs …, and on the economy-wide unemployment rate. A reduction in the offshoring cost affects intrafirm and intrasectoral …. The key parameters determining the impact of offshoring on reallocation of jobs at various margins as well as on the …