We use unique plant-level data to study the link between the local availability of services andthe decision of manufacturing firms to source materials from abroad. To guide our empiricalanalysis we develop a monopolistic-competition model of the materials sourcing decisions ofheterogeneous...

"This paper investigates empirically the link between international outsourcing and the skill structure of labour demand in the United Kingdom. It is the first detailed study of this issue for the UK. Outsourcing is calculated using import-use matrices of input-output tables for manufacturing...