We study the incidence of offshoring, or trade in tasks, on firms' productivity and on manufacturing employment in a standard economic-geography model with iceberg trade costs and a continuum of tasks. In a two-countries world where one country has a Hick's neutral technological edge over the...

Offshoring has gained a significant momentum in recent years. Firm size appears to be the leading factor differentiating firms that offshore from those that do not. We present a model that blends offshoring, or trade in tasks, with a Melitz-style model of monopolistic competition with...

We examine incentives for network-specific investment and the implications for network governance. We model an environment in which participants that make payments over a network can invest in a technology that reduces the marginal cost of using the network. A network effect results in multiple...

We study the incidence of offshoring, or trade in tasks, on firms’ productivity and on manufacturing employment in a standard economic-geography model with iceberg trade costs and a continuum of tasks. In a two-countries world where one country has a Hick’s neutral technological edge over...

Offshoring has gained a significant momentum in recent years. Firm size appears to be the leading factor differentiating firms that offshore from those that do not. We present a model that blends offshoring, or trade in tasks, with a Melitz-style model of monopolistic competition with...

Central and Eastern European countries with the liberalisation process and the recent accession to the EU are, nowadays, well engaged in trade with partner countries and at the same time receive significant and increasing interest from foreign investors. Trade and Foreign Direct Investment can...

This paper explores the ramifications of international outsourcing on unemployment, income distribution and welfare, which is an important but yet unresolved issue. Using the well-known Harris-Todaro (1970) model of sector-specific unemployment, it shows that the effects of outsourcing on...

The study addresses methodological and conceptual issues related to the measurement, perception and economic interpretation of FDI (foreign direct investment) flows, focusing on reinvested earnings (RE). Using Hungarian data for the period 2008–2014 as an example, we review the effects of two...

This study analyzes the structure of regional and global alliance networks of multinationals. It examines the network structure of 172 Triad (U.S., Western European, and Japanese) multinationals during 2001-2003 and how it affects subsequent corporate performance during 2004-2006. We study a...

We study the incidence of offshoring, or trade in tasks, on firms' productivity and on manufacturing employment in a standard economic-geography model with iceberg trade costs and a continuum of tasks. In a two-countries world where one country has a Hick's neutral technological edge over the...