I propose a "technology channel" through which imports of low-skilled intermediates (offshoring) benefit both skilled and unskilled workers by inducing capital deepening and innovation in developed countries. Data strongly support the presence of this channel. Offshoring is associated with large...

We show that shared cultural identity with politicians can help entrepreneurs form new businesses, reducing entry costs, increasing aggregate TFP. Following closely contested Indian state elections during 2006-16, we find increased local firm entry by entrepreneurs belonging to the same cultural...