This paper studies how firms' offshoring decisions shape a country's domestic production networks. We develop a model … foreign suppliers, due to costly communication. Triggered by foreign countries' export supply shocks, firms start offshoring … net effect of offshoring on a firm’s domestic production networks depends on the relative strength of the three effects …

This paper studies how firms’ offshoring decisions shape a country’s domestic production net- works. We develop a model … foreign suppliers, due to costly communication. Triggered by foreign countries’ export supply shocks, firms start offshoring … net effect of offshoring on a firm’s domestic production networks depends on the relative strength of the three effects …

product of Japanese MNEs offshoring production and shutting plants that are relative to others in their industry, high …

’s performance can be explained by the aggregation of heterogeneous effects depending on the FDI motives, sectors and locations …

This paper explores the impact of offshoring, or contracting out of business activities to foreign providers, on firm … productivity, using Japanese firm-level data for the period 1994-2000. We find that offshoring has generally a positive effect on … productivity growth. This effect is robust to controlling for the possible endogeneity of offshoring with respect to unobserved …