This paper provides an analysis of outsourcing and trade in a spatial model à la Hotelling. In this setting, we discuss … the trade-off between transport-cost-related disadvantages and outsourcing-induced production cost advantages of a large …

This paper investigates outsourcing and foreign direct investment (FDI) decisions based on factor price differentials … (perfectly) mobile between countries, the Northern firm produces the final product by outsourcing the other fragmentable process … from the South via FDI (either FDI or outsourcing to a Southern outsourcee); (b) when the Southern firm acquires the …

This paper studies the impact of outsourcing on individual wages. In contrast to the standard approach in the … literature, we focus on domestic outsourcing as well as foreign outsourcing. By using a simple theoretical model, we argue that …, if outsourcing is associated with specialization gains arising from an increase in the division of labor, domestic …