This paper examines the pattern of foreign direct investment (FDI) in producer services. Specifically we construct a model to explain the stylized fact that producer-service FDI tends to follow FDI by downstream industries. Our point is that this may be the result of informational barriers to...

According to the 'convergence hypothesis' multinational companies will tend to displace national firms and trade as total market size increases and as countries converge in relative size, factor endowments, and production costs. Using a recent model developed by Markusen and Venables (1998) as a...

We set out to give a brief outline of key studies that look at the benefits/costs of outsourcing production and services. The bulk of the evidence suggests that farming out physical components, both domestically as well as from overseas, enhances both productivity and profitability. However, the...

In den letzten Monaten stand das deutsche »Exportmodell« in der Kritik. Die deutschen Überschüsse seien mitverantwortlich für die Defizite der Nachbarländer und schaden den Handelspartnern. Ist diese Einschätzung gerechtfertigt? Für Gabriel Felbermayr, Universität Hohenheim, entbehren...

The paper investigates the relationship between offshoring, wages, and the occupational task profile using rich individual-level panel data. Our main results suggest that, when only considering within-industry changes in offshoring, we identify a moderate wage reduction due to offshoring for...