We set up a model of offshoring with heterogeneous producers that captures two empirical regularities of German … offshoring firms. There is selection of larger, more productive firms into offshoring. However, the selection is not sharp, and … offshoring and non-offshoring firms coexist over a wide range of the revenue distribution. An overlap of offshoring and non-offshoring …

This paper sets up a two-country model of offshoring with monopolistically competitive product and monopsonistically … competitive labour markets. In our model, an incentive for offshoring exists even between symmetric countries, because shifting … part of the production abroad reduces local labour demand and allows firms to more strongly execute their monopsonistic …

-skilled labor intensive production to the South. We consider two interrelated issues: (i) the incentives for each country to modify … production function faced by northern firms, then outsourcing contributes to increase (decrease) the public input provision in …

between offshoring and exports. We model a world consisting of many advanced countries that trade differentiated goods among … each other and one "workbench country" that specializes on the production of an intermediate good and engages in inter … differentiated good sector, which may be painful in the presence of frictions. -- offshoring ; multinational firms ; distance costs …

We construct a model of offshoring with externalities and firm heterogeneity. Due to the presence of externalities …, temporary shocks like the Y2K problem can have permanent effects, i.e., they can permanently raise the extent of offshoring in … externalities can help explain the dynamic process of offshoring, where the most productive firms offshore first and the others …

-skilled labor intensive production to the South. We consider two interrelated issues: (i) the incentives for each country to modify … production function faced by northern firms, then outsourcing contributes to increase (decrease) the public input provision in …