) can offshore routine tasks to a low-wage host country. The most productive firms self-select into offshoring, and the … impact on welfare in the source country can be positive or negative, depending on the share of firms engaged in offshoring … among entrepreneurs is higher with offshoring than in autarky. All results hold in a model extension with firm-level rent …

In this paper, we explore the role of trade in differentiated final goods as well offshoring of tasks for inequality …

We propose an endogenous growth model with offshoring to investigate its effects on product innovation and growth in … the country of origin. Offshoring is associated with reduced feedback from offshored plants to domestic labs as well as … static decision to relocate plants but not R&D. Hence, offshoring may be chosen by firms when it damages the growth rate of …

-way offshoring/trade-in-tasks. …

rise in offshoring. To analyze the relationship between globalization, offshoring and relative wages, we develop a general … equilibrium model of trade and offshoring. This reveals that globalization and offshoring have two opposing effects on relative … inequality. The result is a bell-shaped relationship between wage inequality and offshoring when globalization is driven by …

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 …