We study the relation between the off-shoring of intermediates and services and productivity growth in the Italian … off-shoring") is beneficial for productivity growth, while the off-shoring of services is not. We also find that the way … manufacturing industries in 19952003. Our results indicate that the off-shoring of intermediates within the same industry ("narrow …

of intrafirm imports from that region. These factors also favor outsourcing over offshoring. In contrast, low … alternative suppliers in Eastern Europe) favor offshoring over outsourcing. Tax holidays granted by host countries in Eastern …