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 …

This paper analyses the effect of offshoring (i.e., the relocation of activities previously performed in-house to …, we find that offshoring is a rare event: In the sample of firms with 50 or more persons employed, only about 3% of … manufacturing firms and 1% of business service firms have performed offshoring in the period 2014-2016. Second, difference …