Harms, Philipp; Jung, Jaewon; Lorz, Oliver - 2014 - This version: January 5, 2014
In this paper, we develop a two-sector general equilibrium trade model which includes offshoring, sequential production … technological change affect equilibrium offshoring patterns. We show that, against common belief, a reduction in trade costs lowers … the range of tasks offshored even though the aggregate volume of offshoring may increase. …
