This paper determines the distributional effects of international outsourcing in a two sector Hechscher-Ohlin type model. It is shown that the factor-biased and the sector-biased impact of international outsourcing discussed in the literature can be seen as special cases of the more general...

This paper presents a model in which final goods producers outsource intermediate input production. Intermediate inputs are differentiated and their production can be located at home or abroad. The model is used to examine competitive location policy in a (two-country) free trade agreement...