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 …

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

In oligopolistic industries, increased cost saving opportunities via offshoring have a moderating effect on trade … offshoring, and it is only at that level that further economic integration will lead to both wage moderation and offshoring … activities. Therefore, our analysis suggests that rather than provoking a downsizing of the welfare state, offshoring defines an …

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 …