Heterogeneous Globalization: Offshoring and Reorganization

Andrew B. Bernard, Teresa Fort, Valerie Smeets and Frederic Warzynski

No 12820, CESifo Working Paper Series from CESifo

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.

Keywords: globalization; offshoring; reorganization (search for similar items in EconPapers)
JEL-codes: F14 F61 L25 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_12820

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