We construct a model of offshoring with externalities and firm heterogeneity. Due to the presence of externalities …, temporary shocks like the Y2K problem can have permanent effects, i.e., they can permanently raise the extent of offshoring in … an industry. Also, the initial advantage of a country as a potential host for outsourcing activities can create a lock in …

. -- multinational firms ; outsourcing ; intra-firm trade ; offshoring ; vertical FDI …

outsourcing grew at rates experienced during 1996-2005 in business, professional and technical services i.e., in segments where … outsourcing (1) would switch 4-digit occupations 2 percent less often, (2) would spend 0.1 percent less time unemployed, and (3 …We examine the impact on U.S. labor markets of offshore outsourcing in services to China and India. We also consider …

reduce the relative prevalence of FDI or foreign outsourcing. The impact on the composition of offshoring depends on whether … supplier locations, and then study the effects of changes in the quality of contractual institutions on the relative prevalence … of these organizational forms. Better contracting institutions in the South raise the prevalence of offshoring, but may …

We construct a model of offshoring with externalities and firm heterogeneity. Due to the presence of externalities …, temporary shocks like the Y2K problem can have permanent effects, i.e., they can permanently raise the extent of offshoring in … an industry. Also, the initial advantage of a country as a potential host for outsourcing activities can create a lock in …

outsourcing decisions are affected by changes in country and competitor costs. A number of interesting regularities emerge. When a … developed countries. In many cases, the measured responses to cost changes appear to correspond with outsourcing theories that …

-level trade flows with firm-specific instrumental variables based on world demand and supply shocks. Both export and offshoring … shocks have a positive effect on wages. Exports increase wages for all occupational categories while offshoring has … elasticity of wages with respect to exports and offshoring is higher than in firms with no collective bargaining. Wage gains …

The various channels through which a reduction in the cost of offshoring can improve wages in a developed country are … by now well understood. But does a similar reduction in the offshoring cost also benefit workers in the world's factories … in developing countries? Using a parsimonious two-country model of offshoring we find very nuanced results. These include …

We link industry-level data on trade and offshoring with individual-level worker data from the Current Population …