We present a model which considers both regulatory burden of offshoring barriers and possible terms of trade gains from … offshoring tax. Otherwise, free trade is optimal. Welfare reductions from an offshoring tax are more likely with several … developed nations engaging in offshoring. We derive and characterize the Nash equilibrium in such a case …

We develop an endogenous growth model to study the long run consequences of offshoring with firm heterogeneity and … incomplete contracts. In so doing, we model offshoring as the geographical fragmentation of a firm's production chain between a … possibility of offshoring has favorable implications for economic growth. Yet, offshoring induced by a higher bargaining power of …