reduce the relative prevalence of FDI or foreign outsourcing. The impact on the composition of offshoring depends on whether … of these organizational forms. Better contracting institutions in the South raise the prevalence of offshoring, but may …

follow later. Finally, we show the possibility of complementarity between two modes of offshoring: FDI and offshore …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 …

and how these responses, in turn, are transmitted to the labor market. In previous work, we have argued that outsourcing … input purchases from the Census of Manufactures. We construct industry-by-industry estimates of outsourcing for the period … 1972-1990 and reexamine whether outsourcing has contributed to an increase in relative demand for skilled labor. Our main …

integration of commodity markets (i.e., free trade) and international integration of factor markets (i.e., offshoring). In a two …-country, two-good, two-factor model we show that free trade and offshoring have opposite effects on rich-country workers. Free … trade hurts rich-country workers, while reducing the volatility of their wages; by contrast, offshoring benefits them, while …

focuses on tradable tasks and use it to study how falling costs of offshoring affect factor prices in the source country. We …