Kreickemeier, Udo; Zhan, Qu; Unger, Florian - 2026
We develop a two-country general equilibrium model in which heterogeneous firms have access to offshoring and … offshoring opportunities lead to more or less innovation at the firm level. We show that switching into offshoring increases firm … general equilibrium effects, a reduction in offshoring costs unambiguously reduces the innovation activities of non-offshoring …