In this paper, we develop a simple model of international outsourcing and apply it to processing trade in China. We …

outsourcing decisions are affected by changes in country and competitor costs. A number of interesting regularities emerge. When a … developed countries. In many cases, the measured responses to cost changes appear to correspond with outsourcing theories that …

U.S. manufacturing employment. Our findings suggest that offshoring by multinationals was a key driver of the observed …

We use firm-level data on U.S. multinationals to show how offshoring affects domestic employment within and across … firms. We introduce a new instrument for offshoring: Bilateral Tax Treaties, which reduce the cost of offshore activities … in employment at the U.S. parent firm, with smaller effects at the industry and regional levels. In contrast, offshoring …

multi-product firms, offshoring, intra-firm trade and firm export market dynamics …

reduce the relative prevalence of FDI or foreign outsourcing. The impact on the composition of offshoring depends on whether … of these organizational forms. Better contracting institutions in the South raise the prevalence of offshoring, but may …

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 …