Technological advance and improvements in communication technologies have facilitated the offshoring of jobs worldwide … countries that contain developing country labor content. We demonstrate that this pattern of offshoring can harbor a pro …

by now well understood. But does a similar reduction in the offshoring cost also benefit workers in the world's factories … increase or decrease in the developing world as a result of a reduction in offshoring costs. Since global welfare always rises …The various channels through which a reduction in the cost of offshoring can improve wages in a developed country are …

Does a reduction in offshoring cost benefit workers in the world's factories in developing countries? Using a … parsimonious two-country model of offshoring we find very nuanced results. These include cases where wages monotonically improve …, worsen, as well as where wages exhibit an inverted U-shaped relationship with the offshoring cost. We identify qualitative …

equilibrium model of world trade (GTAP). Our finding is that developed countries have little incentive for protectionist misuse of … better enforcement of labour standards in the south to correct vertical distribution effects of world trade in the north are …

We construct a model of offshoring with externalities and firm heterogeneity. Due to the presence of externalities …, temporary shocks like the Y2K problem can have permanent effects, i.e., they can permanently raise the extent of offshoring in … an industry. Also, the initial advantage of a country as a potential host for outsourcing activities can create a lock in …