from a low-wage country. Offshoring an intermediate is only profitable when it has matured sufficiently and the savings in … for parts that are only exported later, consistent with offshoring becoming gradually more difficult. …

Existing models of offshoring are not equipped to explain how global production sharing affects the volatility of … economic activity. This paper develops a trade model that can account for why offshoring industries in low wage countries such … States. We argue that a key to explaining this outcome is that the extensive margin of offshoring responds endogenously to …

–South theoretical framework, I show that higher Northern tariffs reduce the incentives for outsourcing and offshoring, while higher … Southern tariffs have the opposite effects. I also show that increased offshoring and outsourcing imply a decrease in the ratio …

competition and two-way offshoring and to integrate theoretical results of the early offshoring literature. …

-level imports by country of origin and further distinguish between firm-level offshoring of final versus intermediate goods. Results … competition has no effect on firm survival, while offshoring of finished goods to China actually increases firms' probability of … in low-tech Belgian manufacturing over our period of analysis. Offshoring to China further accounts for a small but …

specialization, offshoring) by adding newly traded goods and services and that much of this new trade is in intermediates. I provide …

the cost of offshoring and unemployment. Starting from a high cost of offshoring, a decrease in the cost of offshoring … reduces unemployment first and then increases it. The non-monotonicity of unemployment in the cost of offshoring does not … between the cost of offshoring and unemployment is verified through a calibration exercise performed using parameters for …

domestic and foreign plants. To do so, we examine the first wave of light-truck offshoring to Mexico that occurred due to … and Mexico for the same models of light trucks. Using a new dataset that details the extent of offshoring and domestic … “inshoring” the more complex varieties while offshoring the less complex versions. …