This paper studies how firms' offshoring decisions shape a country's domestic production networks. We develop a model … foreign suppliers, due to costly communication. Triggered by foreign countries' export supply shocks, firms start offshoring … net effect of offshoring on a firm’s domestic production networks depends on the relative strength of the three effects …

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 …

We develop a theoretical framework to explain firms' offshoring decisions in the presence of uncertainty. This model … sharp prediction of the prevalence of offshoring in a given industry: The propensity of firms to source intermediate inputs … particularly pronounced in industries with higher volatility. Combining industry-level data on the U.S. offshoring intensity with …

While there is a consensus in the literature that offshoring has a polarising effect on the skill structure of labour … demand, little is known about its impact on the capital side. In this paper, we analyse the effect of offshoring on the …, we document that offshoring reduces the relative demand for non-ICT capital, thereby also polarising the demand for …

, poor productivity performance, decreased labour demand, and increased imports of intermediate goods (offshoring activities …). Offshoring influences jobs and wages differently depending on the type of industry and worker. We provide a nuanced view of … offshoring in South Africa, using firm- and employer-employee-level data to disentangle its impact on the labour market in terms …

This paper assesses the impact of international outsourcing/offshoring practices on the process of wage equalization … outsourcing/offshoring indices based on input-output data (World Input Output Database, April 2012 release). Two-way relations … indicate that offshoring reduces the wage growth of domestic medium- and low-skilled workers, we show that this negative effect …

This paper extends the literature on the implications of offshoring for labour markets by investigating its effect on … international trade in manufacturing inputs. Being particularly interested in the wage effects of offshoring to low wage countries … (LWC), we employ precise LWC classifications (varying across industries and time) to decompose overall offshoring by source …

pollution haven hypothesis whereby offshoring is central to the mechanism - US manufacturers begin to source from abroad and …

We use Danish firm-level data to examine the causal link between carbon emissions, offshoring, and import competition …. Offshoring reduces firms' emission intensity but increases their production. Import competition reduces firms' production without … affecting their emission intensity. For Denmark, these effects imply that observed offshoring trends reduced the overall …