We study the determinants of the extent of outsourcing and of direct foreign investment in an industry in which …

relevant prevalence of outsourcing and foreign direct investment …

We study the determinants of the location of sub-contracted activity in a general equilibrium model of outsourcing and … trade. We model outsourcing as an activity that requires search for a partner and relationship-specific investments that are … governed by incomplete contracts. The extent of international outsourcing depends inter alia on the thickness of the domestic …