This paper contributes to Hübler (2008) who analyses a partial equilibrium model of outsourcing with Cournot … manufactured by a Western (outsourcing) or Eastern European supplier (offshore outsourcing). The paper asks the question how …

The paper analyses a partial equilibrium outsourcing model with Cournot competition in intermediate good production …. Final production is located in western Europe, whereas the intermediate good can be manufactured by a western (outsourcing …) or eastern European supplier (offshore outsourcing). Interregional production (factor) allocation depending on factor …

We investigate the impact of offshoring on individual level wages and unemployment probabilities and pay particular …. Data are taken from the German Socio-Economic Panel (SOEP), linked with industry-level data on offshoring of materials and … significant reduction in wages as materials offshoring increases, while permanent workers’ wages are unaffected or even tend to …

, we also report a 2-3 percent reduction in the level of materials offshoring following a switch to internet procurement …