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 …

investigate how workers' labour market transitions are affected by international outsourcing. In order to do so, we estimate … nonparticipation. Outsourcing is found to have no significant impact on overall job stability in the manufacturing sector, but it is … associated with increased job stability in the service sector. Furthermore, the effect of outsourcing varies strongly across …