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 … subsidy may improve welfare. We also extend the model to a two-period framework. Delaying outsourcing can be gainful because …

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 …

This paper concerns public input provision as an instrument for redistribution under international outsourcing by using … the provision of public input goods in response to international outsourcing, and (ii) whether international outsourcing … justifies policy cooperation. If the public input good is substitutable for (complementary with) outsourcing in terms of the …

This paper deals with optimal income taxation under labor outsourcing and FDI. We show how the optimal income tax … response to the joint effect of outsourcing and FDI depends on whether FDI is complementary with, or substitutable for …

This paper examines the relationship between offshoring activity by U.S. multinational firms and the structure of U … Analysis (BEA) with detailed measures of U.S. trade preferences from the U.S. International Trade Commission (USITC) to create …, we find that offshoring multinational activity and preferential market access are positively and consistently correlated …

Recent empirical studies have been searching for evidence on and driving forces for offshoring. Frequently, this has … competing with the role of multilateral trade resistance. Our results support evidence for offshoring activities across Europe …

) 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 …

supplier, the presence of international incomplete contracts may lead to a higher price. As a result, trade liberalization …, that induces offshoring, is not necessarily welfare-enhancing for consumers, despite the lower cost of labor in the South …. In addition, firms which use the supplier's component intensively, offshore their supplier in the South using outsourcing …