In a North-South model of international trade, we analyze the ways firms procure their inputs in the presence of relationship-specific investments and incomplete contracts. There are heterogenous final-good producers that are located in the North and compete in monopolistic competition....

Does exporting intermediate goods induce learning from importers? In this paper, we examine to what extent learning from German industries can be explained by knowledge spillovers, channeled through the export of intermediate goods. Our study is based on a sample of 27 German trade partners in...

The paper analyses a partial equilibrium outsourcing model with Cournot competition in intermediate good production. Final production is located in western Europe, whereas the intermediate good can be manufactured by a western (outsourcing) or eastern European supplier (offshore outsourcing)....