A simple model of offshoring is used to integrate the complex gallery of results that exist in the theoretical … offshoring/fragmentation literature. The paper depicts offshoring as 'shadow migration' and shows that this allows … conditions are provided). We show that offshoring requires modification of the four HO theorems, so econometricians who ignore …

A simple model of offshoring, which depicts offshoring as ‘shadow migration,’ permits straightforward derivation of … necessary and sufficient conditions for the effects on wages, prices, production and trade. We show that offshoring requires … modification of the four classic international trade theorems, so econometricians who ignore offshoring might reject the Heckscher …

We investigate the issue of offshoring in a model of two countries and one sector of increasing returns to scale. Our … model uncovers that in a setting of footloose capital, offshoring occurs and evolves in an inverted-U pattern when transport … costs decline. This result can explain China's offshoring soaring in the past decades as well as its recent decline. We also …

We investigate the issue of offshoring in a general-equilibrium model of two countries and one sector of increasing … returns to scale. Our model uncovers that offshoring occurs and endogenously evolves in a bell-shaped pattern when trade costs … the welfare issue. We find that a fall in offshoring costs benefits the high-wage country but hurts the low-wage country …