This paper studies how firms' offshoring decisions shape a country's domestic production networks. We develop a model in which heterogeneous firms source inputs from multiple industries located in different domestic regions and foreign countries. Input sourcing entails communication with...

In practice, we often observe that as part of their dual-channel distribution structure, foreign manufacturers carry out foreign direct investment and sell products through domestic retailers, and export products directly through their own EC sites, thereby incurring an export tariff. We revisit...

Do multinational firms wield more market power than their domestic counterparts? Using Hungarian firm-level data between 1993 and 2007, we find that markups are 19 percent higher for foreign-owned firms than for domestically owned firms. Moreover, markups for domestically owned firms are...