intermediate good in-house and outsourcing it to a nonunionised foreign supplier that makes a relationship-specific investment in … developing the intermediate. The paper sheds light on the issue of whether international outsourcing offers a means to ‘escape …’ the power of domestic unions and on the existence of intra-industry wage dispersion. We show that outsourcing typically …

We show that international outsourcing may reduce welfare of the outsourcing country by deterring market-entry, thus … showing a new effect which is different from the employment and the quality effects creating negative impacts of outsourcing …. Entry deterrence under outsourcing reduces domestic welfare if both the profit extraction and cost saving from outsourcing …

In this paper I investigate, empirically, the outsourcing strategy by firms in French manufacturing industries. I … particularly focus on the effect of the market thickness and of firm heterogeneity on the outsourcing strategy. For this purpose, I … estimate a dynamic probit model where I link the decision to outsource to previous outsourcing behaviour. I am able to estimate …

an intermediate component in-house or purchasing it from a domestic supplier. We model outsourcing as a bilateral …' incentive to outsource. Consumer gains from trade liberalisation are enhanced when it leads to less outsourcing. …