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 …, 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 …

, 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 …