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 … an industry. Also, the initial advantage of a country as a potential host for outsourcing activities can create a lock in …

offshoring (integration) and sourcing strategies and (4) location of firms and labor markets. Second, we overview existing …

This paper examines the relationship between outsourcing and various aspects of employee well-being by devoting special … offshoring involves job destruction, especially when the destination is a low-wage country. In such circumstances, staying … employees' job satisfaction is reduced. However, the relationship between outsourcing and employee well-being is not entirely …

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 …