Benz, Sebastian - ifo Leibniz-Institut für Wirtschaftsforschung an der … - 2012
This paper is a dynamic extension of the well-known theory of trade in tasks by Grossman & Rossi-Hansberg (2008). In my model, a firm’s offshoring decision is governed by production cost savings, but also considers potential imitation risk. I show that such a consideration reduces the level of...