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 …

increasing offshoring activity increases competition in the final goods market, leading to a progressive vertical disintegration … of the supply chains. Initially, the firms that decide to explore offshoring potential choose integration. As competition …

the intermediate from vertically integrated producers, or from independent suppliers. In both cases, offshoring part of …

firms that are consistent with stylized facts from the recent empirical literature. -- multinational firms ; outsourcing … ; intra-firm trade ; offshoring ; vertical FDI …

. -- multinational firms ; outsourcing ; intra-firm trade ; offshoring ; vertical FDI …

-- offshore outsourcing ; business services ; locational advantages ; local impact ; Hungary ; East Central Europe …

The paper analyses the offshore outsourcing of IT services (OOIT), which have become increasingly important for the … US and Europe, incorporating the hidden costs of offshoring - including long-term risks and opportunities - in order to … determine the total cost of offshore outsourcing activities. The debate on the potential future negative employment impacts in …