We present a dynamic model where the probability of outsourcing production is increasing in the firmﾒs expectation of … outsourcing. No prior study has been able to provide such causal evidence. Our results are robust to the inclusion of detailed …

In this paper we argue that an important source of the recent increase in outsourcing is the computer and information … technological change increases outsourcing because it allows firms to use services based on leading edge technologies without … outsourcing costs of IT-based services generating a positive correlation between the IT level of the user and its outsourcing …

Domestic outsourcing has grown substantially in developed countries over the past two decades. This paper addresses the …