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 …

Barriers to outsourcing that are being currently implemented in the US effectively tax its companies who "export" jobs … through outsourcing. The objective is to raise domestic employment. Given that many of the important international markets … oligopolistic context. We find that while an outsourcing tax favors domestic workers by causing firms to switch to a greater use of …

We provide a comprehensive empirical analysis of the links between international services outsourcing, domestic … outsourcing, profits and innovation using plant level data. We find a positive effect of international outsourcing of services on … innovative activity at the plant level. Such a positive effect can also be observed for domestic outsourcing of services, but the …

This paper studies the impact of outsourcing on individual wages in three European countries with markedly different … and construct comparable measures of outsourcing at the industry level, distinguishing outsourcing by broad region …. Estimating the same specification on different data show that there are some interesting differences in the effect of outsourcing …

Using microdata, we analyse the determinants of firm relocation and outsourcing decisions and their effects on firms …

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 …

We analyze the impact of international outsourcing on income, if the domestic labor market is imperfect. We distinguish … and profit share. We find that in the first case outsourcing will reduce (increase) workers' income, if the labor union …'s bargaining power is sufficiently high (low) and outsourcing will increase workers' income in the second case. For the amount of …

With outsourcing comes a perceived tension between the competitive pressures faced by domestic firms and the effect … that outsourcing has on domestic workers. To address this tension, we present a general-equilibrium model with an … oligopolistic export sector and a competitive import-competing sector. When there is a minimum wage, an outsourcing tax might be …