We construct a model of offshoring with externalities and firm heterogeneity. Due to the presence of externalities …, temporary shocks like the Y2K problem can have permanent effects, i.e., they can permanently raise the extent of offshoring in … an industry. Also, the initial advantage of a country as a potential host for outsourcing activities can create a lock in …

increasing offshoring activity increases competition in the final goods market, leading to a progressive vertical disintegration … of the supply chains. Initially, the firms that decide to explore offshoring potential choose integration. As competition …

the intermediate from vertically integrated producers, or from independent suppliers. In both cases, offshoring part of …

firms that are consistent with stylized facts from the recent empirical literature. -- multinational firms ; outsourcing … ; intra-firm trade ; offshoring ; vertical FDI …

. -- multinational firms ; outsourcing ; intra-firm trade ; offshoring ; vertical FDI …

-- offshore outsourcing ; business services ; locational advantages ; local impact ; Hungary ; East Central Europe …

distinguish between domestic and foreign sourcing, as well as between outsourcing and vertical integration. A firm's choice is … model. -- productivity ; outsourcing ; intra-firm trade ; foreign direct investment ; incomplete contracts ; firm-level data …

This paper analyzes the off-shoring strategy from an empirical view. It focuses on a set of models, extracts a set of … French manufacturing firms that provides detailed information on the off-shoring strategy. The choice of off-shoring modes is …