Egger, Hartmut; Kreickemeier, Udo; Wrona, Jens - In: Review of International Economics 33 (2024) 1, pp. 78-98
This paper sets up a two‐country model of offshoring with monopolistically competitive product and monopsonistically … competitive labor markets. In our model, an incentive for offshoring exists even between symmetric countries, because shifting … labor market power. However, offshoring between symmetric countries has negative welfare effects and therefore calls for …
