Mitra, Devashish; Ranjan, Priya - Forschungsinstitut zur Zukunft der Arbeit <Bonn> - 2007
We construct a model of offshoring with externalities and firm heterogeneity. Due to thepresence of externalities …, temporary shocks like the Y2K problem can have permanenteffects, i.e., they can permanently raise the extent of offshoring in an … industry. Also, the initialadvantage of a country as a potential host for outsourcing activities can create a lock ineffect …