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

This paper concerns public input provision as an instrument for redistribution under international outsourcing by using … the provision of public input goods in response to international outsourcing, and (ii) whether international outsourcing … justifies policy cooperation. If the public input good is substitutable for (complementary with) outsourcing in terms of the …

organizational decision is driven by two countervailing effects: the ownership rights effect favors outsourcing, while the "indirect … outsourcing of the "less important" supplier is chosen in equilibrium. We also consider an open economy setup where the producer … decides whether to offshore inputs. -- multinational firms ; outsourcing ; intra-firm trade ; property rights approach …

abroad, and where outsourcing is substitutable for domestic low-ability labor. Our results show that the incentives for the … unemployment also constitutes an incentive to implement a tax on outsourcing. Without a direct instrument for taxing outsourcing …, the government may reduce the amount of resources spent on outsourcing by increased provision of the public input good …