International outsourcing to lower cost countries such as China and India can best be understood through the enrichment … of trade models to include concepts from industrial organization and contract theory that explain the vertical … insights into the forces driving international outsourcing. The paper focuses on relationship-specific investment, incomplete …

We develop a theory of outsourcing in which there is market power in one factor market (labor) and no market power in a … show there is always outsourcing in the market allocation when a friction limiting outsourcing is not too big. The key … equilibria that vary in the degree of outsourcing. Across these equilibria, wages are lower the greater the degree of outsourcing …

an industry. Also, the initial advantage of a country as a potential host for outsourcing activities can create a lock in … outsourcing …

We study the determinants of the extent of outsourcing and of direct foreign investment in an industry in which …

We study the determinants of the location of sub-contracted activity in a general equilibrium model of outsourcing and … trade. We model outsourcing as an activity that requires search for a partner and relationship-specific investments that are … governed by incomplete contracts. The extent of international outsourcing depends inter alia on the thickness of the domestic …

1980's. We argue that a contributing factor to this decline was rising imports reflecting the outsourcing of production …