distinguish between domestic and foreign sourcing, as well as between outsourcing and vertical integration. A firm's choice is … model. -- productivity ; outsourcing ; intra-firm trade ; foreign direct investment ; incomplete contracts ; firm-level data …

not accurately distinguished between offshoring, domestic outsourcing, and the substitution of domestic by foreign … offshoring and domestic outsourcing with a firm panel. I find that offshoring of non-core activities has led to productivity … gains whereas offshoring of core activities and domestic outsourcing have had no such effects. The estimated productivity …