Imports are linked to higher cost mark-ups and firm profits, and the gains from such non-competitive imports--the result of offshoring--are increasingly associated with the reinvestment of these higher profits. Our regression analysis of 35 US manufacturing and service industries over the period...

Two fundamental issues which have been ignored in the convergence debate are addressed in this paper. First, there has been little attention paid to the development of a general model which is able to explain convergence or divergence. Second, in the rush to put data to a convergence hypothesis,...