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 …

labor market effects of offshoring. While theory focuses on one-sector or two-sector models, empirical studies exploit … variation in offshoring across a large number of industries, typically including a linear offshoring term in the analysis …. Thereby, these studies implicitly assume a monotonic relationship between offshoring and labor market outcomes and ignore …

the public concern can be addressed that international fragmentation and outsourcing to low wage countries lead to … outsourcing and critically assess the role of political intervention that aims to reduce unemployment benefits under …

causes and consequences of outsourcing. While much of this work has focused on the outsourcing versus domestic production … decision of the firm with labor cost-saving as the key driver for outsourcing, we further explore how preference …-based outsourcing may arise in a dynamic world equilibrium. We address this problem in a North-South model in which the outsourcing …