This paper studies how firms' offshoring decisions shape a country's domestic production networks. We develop a model … foreign suppliers, due to costly communication. Triggered by foreign countries' export supply shocks, firms start offshoring … net effect of offshoring on a firm’s domestic production networks depends on the relative strength of the three effects …

firms that are consistent with stylized facts from the recent empirical literature. -- multinational firms ; outsourcing … ; intra-firm trade ; offshoring ; vertical FDI …

uncertainty by observing offshoring firms' behaviour. The model characterises a sequential offshoring equilibrium path, led by the … Colombia, we test for the determinants and timing of offshoring decisions. We also derive spatial probit structural models to … identify the firms' dynamic trade-off when they decide on the offshoring location. We find supportive evidence for the model …

faster task offshoring in sectors exposed to lower labour-market tightness. We discuss policy implications of these findings. …

privatization activity appears to be outsourcing. …

both crucial for the emergence of outsourcing. The supplier purposefully avoids industry pro.t maximization to enlarge its …

multiple complementary inputs and the entry of a supplier into the final good market gives rise to mutual outsourcing of inputs … between the encroaching supplier and the incumbent. We show that, post encroachment, mutual outsourcing between the competing … mutual outsourcing. Our analysis yields novel managerial, empirical and policy implications. …