, little is known about the impact of institutional quality on offshoring. This is surprising, given that offshoring has become … between institutional quality and offshoring. The results suggest that weak institutions are negatively related to offshoring … in general and to offshoring of R&D-intensive goods in particular. Furthermore, firms that are able to establish long …

The paper answers two questions simultaneously. What is the effect of offshoring on firms' total factor productivity …? What is the effect of offshoring on skill-biased technological change? We estimate a model of firm production that allows … for the effect of offshoring on both total factor productivity and relative skilled labor productivity, and for spillovers …