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We investigate the effects of production offshoring on the innovation activities of manufacturing firms in the home … offshoring firms on average employ a higher share of R&D and design personnel, introduce new products more frequently to the … market, and invest more frequently in advanced process technologies compared to non-offshoring firms. Concerns that …
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In this paper, we revisit questions about the onshore employment effects of firms that conduct foreign direct investment (FDI) in countries with substantially lower average wages. Our results derive from the use of rich administrative records on the universe of employees in German multinational...
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We develop a theory of a firm in an incomplete contracts environment which decides on the complexity, the organization, and the global scale of its production process. Specifically, the firm decides i) how many intermediate inputs are simultaneously combined to a final product, ii) if the...
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