economy has become highly integrated, and foreign outsourcing has become a standard practice for firms. While trade theory … production process abroad. Advances in globalization entail lower tariff rates of outsourcing. Contrary to the common wisdom, we …

The aim of this paper is to provide firm-level evidence on the short-run link between outsourcing and labor … find a positive effect on productivity from outsourcing only if firms provide training for the workforce. This indirect … impact on productivity is independent of the type of activity outsourced and is bigger in the case of service outsourcing …