Bergin, Paul R.; Feenstra, Robert C.; Hanson, Gordon H. - In: Journal of International Economics 85 (2011) 2, pp. 163-173
Existing models of offshoring are not equipped to explain how global production sharing affects the volatility of … economic activity. This paper develops a trade model that can account for why offshoring industries in low wage countries such … States. We argue that a key to explaining this outcome is that the extensive margin of offshoring responds endogenously to …