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 …

between intra-firm trade and outsourcing given heterogeneity at the product- (complexity), firm- (productivity) and country …