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Heterogeneous Globalization: Offshoring and Reorganization

Author

Listed:
  • Andrew B. Bernard
  • Teresa Fort
  • Valerie Smeets
  • Frederic Warzynski

Abstract

This paper uses a unique offshoring survey to show that firms import the same goods they manufacture at home after they relocate production to low-wage countries. Instead of ceasing domestic production, offshorers produce higher-priced domestic varieties and increase both the shares and levels of their employment in innovation-related occupations. These responses highlight an under-explored aspect of globalization: the opportunity to offshore production of low-end varieties and focus domestic activities on the development, production, and marketing of high-quality or technologically advanced versions.

Suggested Citation

  • Andrew B. Bernard & Teresa Fort & Valerie Smeets & Frederic Warzynski, 2026. "Heterogeneous Globalization: Offshoring and Reorganization," CESifo Working Paper Series 12820, CESifo.
    • Handle: RePEc:ces:ceswps:_12820
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    File URL: https://www.ifo.de/DocDL/cesifo1_wp12820.pdf
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    More about this item

    Keywords

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    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts

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