distinguish between domestic and foreign sourcing, as well as between outsourcing and vertical integration. A firm's choice is … model. -- productivity ; outsourcing ; intra-firm trade ; foreign direct investment ; incomplete contracts ; firm-level data …

multinationals, are less likely to rely on imported or internally provided services. -- international trade ; services ; off-shoring …

We study ex post outsourcing of production in an imperfectly discriminating contest, interpreted here as a research … tournament or a procurement contest for being awarded some production contract. We find that the possibility of outsourcing …, outsourcing reduces the procurement costs of inducing a given level of effort if the contest organizer can collect entry fees …

input supplier (vertical integration vs. outsourcing), as well as the location of intermediate input production (offshore vs … intensity, but favors outsourcing in industries of high sourcing intensity. Moreover, we find that productivity boosts … offshoring throughout all industries, with the effect increasing monotonically in the sourcing intensity. Our results lend strong …

. Such outsourcing leads to increased wages for the remaining inhouse production. We find that stronger unions, which imply … higher domestic wages, reduce incentives for international outsourcing. Though somewhat surprising, this result provides a … theoretical reconciliation of the empirically observed trends of deunionization and increased international outsourcing in many …