distribution of incomes and employment, to consider explicit measures of well-being, which have been shown to depend on far more …

be performed at home or abroad, but offshoring entails costs that vary by task. In equilibrium, the tasks with the … highest offshoring costs may not be traded. Among the remainder, those with the relatively higher offshoring costs are …

The rise of offshoring of intermediate inputs raises important questions for commercial policy. Do the distinguishing … features of offshoring introduce novel reasons for trade policy intervention? Does offshoring create new problems of global … perform in a world where offshoring is prevalent? In this paper we provide answers to these questions, and thereby initiate …

offshoring in the short run and in the long run (when technology levels are endogenous). The short-run analysis shows that when … research efforts in response to increased offshoring. In particular, the rich country always gains from increased fragmentation …

therefore, in the unemployment rate. Furthermore, a firm can increase its domestic employment through offshoring. Also, such a …In this paper, in order to study the impact of offshoring on sectoral and economywide rates of unemployment, we … offshoring. This result can be understood to arise from the productivity enhancing (cost reducing) effect of offshoring. If the …

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 …

tradable tasks and use it to study how falling costs of offshoring affect factor prices in the source country. We identify a …

We construct a model of offshoring with externalities and firm heterogeneity. Due to the presence of externalities …, temporary shocks like the Y2K problem can have permanent effects, i.e., they can permanently raise the extent of offshoring in … externalities can help explain the dynamic process of offshoring, where the most productive firms offshore first and the others …