This paper studies how firms' offshoring decisions shape a country's domestic production networks. We develop a model … foreign suppliers, due to costly communication. Triggered by foreign countries' export supply shocks, firms start offshoring … net effect of offshoring on a firm’s domestic production networks depends on the relative strength of the three effects …

mode of entry. One type of this mode is offshoring which makes easier the relocation of business activity from developed … economies to developing economies. The study of offshoring activities is the focus of this paper, with the data coming from a … multinational firms to be engaged in foreign direct investment via offshoring. …